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Wednesday, July 19, 2006
Mandaue market to eat up P477M, to cost more than CICC
By Rose O. Versoza
Sun.Star Staff Reporter
HOW could a city public market cost higher than the ongoing Cebu International Convention Center (CICC)?
Some Mandaue City residents are asking this question with the City Government’s plan to get a P377-million loan from the Land Bank of the Philippines to finish the proposed public market.
Mayor Thadeo Ouano, in defending the market cost, said ordinary people will find it hard to believe that building a mere market will be more costly than the construction of the CICC.
However, “technical people” would know the distinction and you cannot just compare the market with CICC.
The City Government had already spent around P100 million for the first phase of the market, which covered only the structure’s foundation, so spending another P377 million will bring the total project cost to P477 million.
The CICC, which will be the main venue of the Asean summit in December, is expected to cost P375 million.
The amount will cover the structure, its fixtures and finishing touches and landscaping.
The Cebu Provincial Government is funding the CICC.
Ouano explained the market will cover a one-hectare area, which is much bigger than the CICC, which covers only 7,000 square meters at the Mandaue Reclamation Area.
Since the facility is going to be a two-story building, the market’s total floor area will be two hectares.
The mayor also explained that the market’s foundation is also more costly than that of the CICC because the site is a reclamation area.
Although CICC is also in a reclamation area, it was reclaimed way ahead than that of the market site.
Besides, the market site is adjacent to the sea so its foundation has to be stronger.
Since the City Government has no available funds for the market project, Ouano said it is necessary to take out a loan to finance its completion.
It would be difficult if the City will first save its money for a period of 20 years before it would start building its market, he said.
As for the residents' perception that the City Government is getting drowned by debts, Ouano assured the City has the capacity to pay.
He said banks even give a high rating to Mandaue City's paying capacity; this is the reason many banks are offering loans to the City.
"When it comes to a point that a debt is paid from another debt, that is bad management," said Ouano.
But this is not so for Mandaue.
Based on the 2005 annual audit report prepared by the Commission on Audit, Mandaue City's long-term liabilities reached P334.17 million.
This includes P108 million for the segregation bins and garbage compactors, P50 million for the market construction, P43.7 million for the slaughterhouse, P11.45 million for the North Bus Terminal, P35 million for road improvements and P36.77 million for building constructions.
As of 2005, its total assets amount to P1.85 billion, mostly in properties. The City's cash is only P445 million but it has another P62.86 million in receivables.
Its total income last year reached P606.69 million.
For Bisaya stories from Cebu. Click here. (July 19, 2006 issue)
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