Capitol mulls P1.5B loan for building

THE Provincial Government plans to loan P1.5 billion for the construction of a 20-storey building that will rise on the site of the BAEX building in the Capitol compound.

Cebu Gov. Hilario Davide III told reporters a design for the new building has been finished but it still subject for approval by the Provincial Board.

Davide made the announcement after he and Provincial Board were presented with the proposed design for the new building during a caucus yesterday.

The proposed design came from architects of AS Enriquez Engineering Consultancy, whom the Province has hired to come up with the detailed engineering design and feasibility study on the proposed building.

Davide said that Capitol officials plan to loan the amount from the Development Bank of the Philippines (DBP), but that the amount might increase because of a projected rise in the prices of construction materials.

The governor also said he still needs to secure authorization from the PB to enter into a loan with DBP.

The loan amount of P1.5 billion is equivalent to about one-third of the Province’s budget of P4.5 billion for 2018. It’s also equivalent to Cebu Province’s total liabilities as of Dec. 31, 2016. The Capitol had set yesterday, March 5, as its deadline for firms interested in bidding for the contract to demolish the BAEX building, according to its website. It set a timetable of 45 days for that work to get done.

In a separate interview, Vice Gov. Agnes Magpale said a resolution that will authorize Governor Davide to enter into a loan contract with DBP will be filed during next Monday’s session.

The old BAEX building, which is beside the executive building of the Capitol and used to house a post office, was abandoned after it was heavily damaged during an earthquake in October 2013. (JKV)
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