Sun.Star: CICC costs may reach P800M, Cebu capitol admits

The Cebu International Convention Center (CICC), the site of last January’s Association of Southeast Asian Nations (Asean) summit, is increasingly turning out to be more expensive than expected. Sun.Star Cebu reported Thursday that the provincial government admitted its expenses for the CICC may reach P793 million in a “worst-case scenario." However, Capitol consultant on information Rory Jon Sepulveda said the amount is "hypothetical," and would only be true if the Project Monitoring Office recommended the approval of all items. Sepulveda added that the capitol's engineering office found some "double costing" in the claimed items of work. Cebu Gov. Gwendolyn Garcia earlier mentioned the P793-million figure to show that even in a worst-case scenario, the CICC cost lower than other convention centers in the Philippines. As of May 3, the Capitol already paid P581.274 million for the construction of the CICC. The total allocation for the project was only P637 million. Garcia cited figures from the Construction Cost Handbook Philippines 2006 showing a structure such as the CICC would cost from P1.004 to P1.170 billion. She added that in contrast to the now almost P7-billion South Road Properties (SRP) that gives the Cebu City government payables of P1 million a day for interest, the CICC already yielded P3.2 million. Even if the CICC were to cost P793.1 million, Garcia said this would mean P30,873 per square meter of the 25,691.45-square meter structure. This is within industry standards of P26,900 to P33,150 per square meter for standard office buildings, she said. For his part, 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. He added 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. The billing statement was for electrical and plumbing works, as well as site development and structural, civil and architectural works. - GMANews.TV