PB backs Mandaue’s plan to use CICC

HAVING incurred a deficit since 2008, the Cebu International Convention Center (CICC) has used P41.797 million of the Provincial Government’s general fund.

Provincial Accountant Marieto Ypil presented the report of the CICC’s financial state to the CICC management board (CICCMB), which met for the first time since Acting Gov. Agnes Magpale took over the Capitol.

Ypil said the Capitol can pay more than P400,000 due to the Philippine Exhibits and Theme Parks Corporation (Petco), the firm that manages the CICC, but the move has to be approved by the Provincial Board (PB).

The CICC management board pays P178,571.43 a month to Petco for its consultancy and management services.

The PB, meanwhile, passed a mass motion supporting the Mandaue City Government’s plan to move City Hall to the CICC.

Sought for comment on the PB resolution, Magpale told Sun.Star Cebu that Mandaue’s plan will be reconsidered depending on the feasibility of the Province running the CICC.

Financials

Magpale presided over the CICCMB meeting where Ypil presented his report on the facility’s financial standing.

Ypil said CICC’s revenues in 2008 reached P23.021 million, P1.226 million less than its expenditures of P24.247 million.

In 2009, CICC’s revenues amounted to P15.485 million but its expenses reached P16.391 million, resulting in a deficit of almost P1 million.

Apart from this, Ypil said, CICC used the Capitol’s general fund to pay its P8.279 million electricity bills in 2009.

In 2010, its revenues were reported to be P12.759 million while its expenses was P12.561 million. However, its electricity and water bills—totaling P9.9 million—were paid for by the Capitol.

Payables

In 2011, CICC’s electricity, water and landscaping work, amounting to P593,349, were taken from the Provincial Government’s general fund.

In 2012, its receipts reached P14.072 million while expenses were only P11.858 million. But the Capitol’s general fund was used to pay for its utility bills and payables to a security agency (P3.283 million), janitorial services (P3.571 million) and landscaping work (P802,116).

Ypil said CICC has a trust fund but it was depleted so the Capitol’s general fund was tapped to pay for its expenditures.

Petco chairman Jose Luis Yulo asked the CICCMB to consider the benefits of the CICC on Cebu’s economy.

He cited 2007 estimates that a foreign guest in a meeting, incentives, travel, convention or exhibition spends at least P10,000 a day for his hotel accommodation, food, beverage and shopping.

Tourism

Apart from this, there are investments in events promotion and construction of tourism support services that create jobs.

Events held at the CICC also promote the Cebu’s tourism, Yulo said.

He said CICC high electricity consumption can be blamed on its airconditioning system.

Since its design was done according to the specifications of organizers of the Association of Southeast Asian Nations (Asea) summit, the facility has a centralized airconditioning system that is set at high cool.

Yulo said the issue was raised in 2007 but nothing was done about it.

Meanwhile, lawyer Jamaal Calipayan, executive secretary of Mandaue City Mayor Jonas Cortes, said the plan to move City Hall to the CICC was a “hypothetical” one.

He said that while Mandaue City can be a potential buyer of CICC, the City Government has not made a final decision yet.

Magpale earlier said the CICC is considered as a venue for meetings related to the Asia Pacific Economic Cooperation (Apec) summit in 2015.