‘TALE OF DRAGONS’: Treñas Challenges Mabilog Over 2012 Parola Wharf Deal

By Rjay Zuriaga Castor

Iloilo City Mayor Jerry Treñas has thrown a challenge to former mayor Jed Patrick Mabilog, questioning his past and present associations with entities linked to the term “dragon”, as the city government moves to renegotiate the 2012 Joint Venture Agreement (JVA) for the Iloilo-Guimaras Ferry Terminal at Parola Wharf.

“Why is the past catching up with the present? From one dragon to Double Dragon. Maybe he (Mabilog) should answer that. If he dares, I also dare him. Why is it that you are so concerned about the dragons? I thought it was only a TV series. Why is he very concerned about his dragons?” he said.

Treñas’ remarks were a veiled reference to Melvin Odicta, an alleged Iloilo drug lord known as the “Dragon,” and DoubleDragon Properties Corporation (DDPC), the developer of the ferry terminal.

It can be recalled that former President Rodrigo Duterte publicly linked Mabilog to Melvin on several occasions, suggesting that Mabilog was related to or associated with the Odictas.

Melvin was killed along with his wife Miriam on August 29, 2016. The couple was shot at the Caticlan Jetty Port in Malay, Aklan.

Mabilog consistently denied any involvement with illegal drugs or connections to Melvin. He maintained that he had actively worked against the drug trade during his tenure as mayor.

“I would like to ask (Mabilog), why do you really love dragons? He had dragons before and now he has a double dragon?” Treñas continued.

TREÑAS CALLS FOR PUBLIC DEBATE

As he finally addressed the JVA, Treñas said the city government is open to a public debate if Mabilog wants to discuss the deal, which was signed during his administration.

“If Mabilog wants to talk, we can have an open debate about this. I do not want to preempt because of the City Legal Office (CLO), it’s their findings and I do not want to preempt them before they come up with their final [resolution],” he said.

“The problem is if Mabilog really wants to protect his dragons, then it is up to him,” he added.

Treñas also questioned whether the agreement entered into by the Mabilog administration complied with the Build-Operate-and-Transfer (BOT) Law, the legal framework for Public-Private Partnerships (PPP) in place at the time.

“Did it go through that [the key components of the PPP Code]. Did it? I am a lawyer and I saw issues,” he said.

In 2012, the country only had a well-established framework for PPPs based on the BOT Law. The law served as a foundational legal framework for PPP projects until the introduction of the PPP Code, which was signed into law on December 5, 2023.

The BOT Law focuses on specific contractual arrangements like Build-Operate-and-Transfer, Build-and-Transfer, and Build-Lease-and-Transfer, among others.

The PPP Code, on the other hand, provides a comprehensive framework covering various forms of PPPs beyond just BOT schemes, aiming to streamline processes across different types of projects.

Projects in both frameworks are undertaken through competitive bidding or unsolicited proposals.

The PPP Center website showed that the DDPC’s terminal project was undertaken under an unsolicited procurement mode.

LEGAL OFFICE TO RENEGOTIATE DEAL

On January 30, the City Council approved the resolution authorizing the City Legal Office (CLO) to initiate the renegotiation with the DDPC. It was given two months to report to the City Council the results of renegotiation.

Treñas, however, pointed out that if the contract was flawed from the start, then there would be nothing to renegotiate because it would be deemed null and void.

He also raised concerns about the financial aspects of the deal, questioning whether the city — the owner of the land — received a fair share in the project.

“Is one percent sufficient for our participation? Mabilog should answer those questions because he was the one who entered. That is why I already disassociated myself from the issue and get the City Legal Office to renegotiate,” he added.

Under the JVA, Iloilo City is entitled to 1% to 5% of gross terminal revenues, 1% from other revenue sources, such as berthing and mall rentals, and ownership of the entire terminal after 25 years if the contract is not renewed.

MABILOG DEFENDS THE DEAL

Mabilog dismissed the claims of an unfair deal, arguing that critics failed to understand the economic realities of 2012 when the city had low investment interest and securing funding was a major challenge.

“There was little investment interest in the city, making it a significant risk for any investor to commit PHP 126 million and be locked into a 25-year agreement. DoubleDragon took on this risk when there was no guarantee of success, a reality that critics fail to acknowledge,” he said in a statement on Sunday.

Mabilog emphasized that the project went through a proper evaluation process before it was approved. He noted that a committee assessed DDPC’s proposal and recommended it as advantageous for the city.

The City Council further reviewed and authorized Mabilog to sign the agreement. Under the JVA, DDPC was granted a 25-year term to finance, construct, and operate the ferry terminal, with an option for a 25-year extension.

Mabilog explained that the terminal project was a no-cost investment for the city, unlike the market redevelopments of the Treñas’ administration that heavily relied on loans.

“If the city genuinely believes it could have negotiated a better deal, it should initiate discussions directly with DDPC to renegotiate the terms instead of making baseless and illogical allegations among others,” he highlighted.