A nearly P24-million ecotourism project in the small town of Majayjay, Laguna, is on its way to becoming another waste of money, according to the Commission on Audit (COA).
The Majayjay Eco-Tourism Project, COA said, has not been in operation and didn’t earn anything for the town, which borrowed the money to finance the project.
The project was supposed to have developed areas around the town’s waterfall, one of its main tourist attractions, into a resort with picnic decks, camping areas, overnight facilities and elevated walkways connecting structures in the area.
COA said the project was meant to boost tourism in the town and generate revenue.
A visit by COA inspectors, however, led to the discovery that the facilities were not operating because of defects. Structures were damaged and can’t be used.
The COA said it found that while the municipal engineer certified the project to be 100-percent complete, the certification wasn’t accepted by the municipal government and wanted its contractor to repair defects.
“Further verification also showed that no income has been derived from this project and it cannot likewise boost tourism because it is not yet operational,” the COA report said.
COA also said since the project was funded by a loan, the government was required to pay principal and interest. For 2010, the municipal government paid P1.2 million out of its Internal Revenue Allotment for interest of the loan.
It said the Majayjay government would continue to pay the interest every semester plus the equivalent principal after the five-year grace period.
And since Majayjay is not receiving income from the project, this would make it more difficult for the municipal government to pay for the loan.
“In this case, the operation will be hampered as the funds out of the Internal Revenue Allotment intended for other programs and activities will be utilized for the repayment of loan,” it added.
It said the municipality should exert all efforts to make the ecotourism project operational to make it earn. This way, it would have cash for debt services.
In response, the local government acknowledged the COA recommendation and vowed to take action for the project’s implementation.