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The City Slaughterhouse: A PPP project in Calapan City

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The City Government of Calapan has always been keen on the prospects of economic development on its locality. Its leaders keep on finding ways and means on how to generate jobs and eventually create income relative to augmenting the local revenue as supplement to the city’s share in the Internal Revenue Allotment (IRA). As many LGUs did in the past, Calapan City LGU entered into a Memorandum of Agreement with Mr. Jesus H. De Vera, private sector of Rosario, Batangas to open a facility that caters to butchering animals intended for sale and consumption. This facility is known for many as the modern slaughterhouse structure or the abattoir.

The Calapan City slaughterhouse was borne out of a scheme expressly stated in R.A. 6957 or “An act authorizing the financing, construction, operation and maintenance of infrastructure projects by the private sector and for other purposes as amended by R.A. 7718.” It was inspired by the Public-Private Partnership (PPP) under the scheme Build-Operate-and-Transfer. The construction commenced in 2012 following a demolition of the old structure. The facility operated in the succeeding year until the present time.

Based on the contractual arrangement made between the City Government of Calapan and the project proponent, the latter carried out the construction including the financing, operation and maintenance of the slaughterhouse structure. The facility shall be operated over a fixed term of thirty (30) years during which it is allowed to charge users corresponding fees and charges. This will enable the project proponent to recover its investment and the operating and maintenance expenses in the project. At the end of thirty (30) years, the project proponent transfers the facility to the City Government of Calapan.

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The facility was rated AA by the National Meat Inspection Service (NMIS) which means that the meat processed here can be transported even outside the city or its neighboring towns. This became possible because of the high standards applied in the butchering of animals. Good manufacturing practices are taken into account as its remarkable feature over the traditional manner of slaughtering animals. The facility’s butchers are trained about the modern methods and techniques in butchering. It also employs proper sanitation and solid waste management practices. For ecological consideration, it was granted Environmental Compliance Certificate (ECC) with regard to how it treats waste water and other solid wastes. Hence, the consuming public can be assured of the quality meat being sold in various meat shops in the city.

As an economic enterprise, this facility collects fees such as: coral fee, sanitary fee, renovation and maintenance fee, value added tax and technology fee. The city government is bound to make the proper and timely remittance of the share of the national government in the ante-mortem and post mortem fees. For the year 2017, LGU Calapan obtained a total  of P986,240.50 of business income in its slaughterhouse operation. With the foregoing, this facility is a relatively good source of income for the LGU while it assures the public about safety of its meat consumption. It can also generate additional jobs since it employed local residents who are willing to undergo training to further improve their skills.

By: CPDO Calapan City