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Thursday, June 28, 2007
Capitol admits CICC cost may reach P800 million
CEBU CITY -- The Capitol is admitting that expenses for the Cebu International Convention Center (CICC) may reach P793 million, calling it the “worst-case scenario” for the project.
However, they said this amount would be arrived at only if they consider the entire P211.9-million final billing by WT that has yet to be paid, although they stressed that the claimed items of work is still being verified.
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Capitol consultant on information Rory Jon Sepulveda said the amount is “hypothetical,” and would only be true if the Project Monitoring Office will recommend for the approval of all items.
But Sepulveda added that the Capitol’s engineering office found some double costing in the claimed items of work.
As of May 3, the Capitol already paid P581,273,727 for the construction of the CICC, which was completed in time for the Association of Southeast Asian Nations (Asean) and East Asia summits last January.
The total allocation for the project was only P637 million.
Governor Gwendolyn Garcia earlier made the “theoretical” statement of the worst case scenario to show that even if they will end up spending that much amount, it would still be below industry standard costs and would be lower than other convention centers in the Philippines.
She said that based on the Construction Cost Handbook Philippines 2006, a structure such as the CICC would cost from P1,004,398,400 to P1,170,198,550.
Also, she showed that in contrast to the now almost P7-billion South Road Properties (SRP) that is only giving Cebu City Government payables of P1 million a day for interests, the Province already earned P3.2 million from the CICC.
She said she is challenging the media to highlight the City’s ballooning debt for SRP, which will affect basic services, as much as media features the expenses for the CICC.
“Until now, wa pa mahibaw-i kung naa bay nibalik nga kita from that project. That is a valid question and a valid answer must be given,” she said.
Speaking before the Association of Barangay Councils Wednesday, Garcia also said, “Mabayran ang CICC nga way bisan usa ka daku nga utang. I can assure you that this number one province in the country will remain debt-free, zero debt unlike Cebu City…”
With a total floor area of 25,691.45 square meters, the cost per square meter for the CICC, in case the total cost would reach P793,192,776, would be P30,873 per square meter. Garcia said this is within industry standards of P26,900 to P33,150 per square meter for standard office buildings.
Lawyer Victor Maambong, Provincial Board chairman for the committee on budget and appropriations, said the Board is allowed to pass supplemental allocation to meet valid claims of work.
“That can be done, but we do not know yet if the amount we appropriated was already exhausted or depleted. We are still awaiting the official report because they are still checking the veracity of the claims,” said Maambong.
Since appropriating more to meet work done for the project is allowed, Maambong said the “bottomline question” that remains is whether the expenses were “reasonable.”
For this, the Provincial Board can have a say on the matter because members could always refuse to authorize any more appropriations for additional expenses, he said.
He further pointed out that with the system of post-audit in government, the multi-million transaction will be subject to the review of the experts from the Commission on Audit.
“But I am confident that this is within the standards,” said Maambong.
Last May 11, businessman Crisologo Saavedra filed a supplemental motion to his plunder complaint against Capitol officials, asking the Office of the Ombudsman-Visayas for a freeze payment order against WT’s final bill.
The billing statement was for electrical and plumbing works, as well as site development and structural, civil and architectural works. (JPM of Sun.Star Cebu)
For more Philippine news, visit Sun.Star Iloilo. (June 28, 2007 issue)
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