CICC
Cebu provincial legal officer Orvi Ortega said that the Cebu Provincial Appraisal Committee (CPAC) will conduct an appraisal on the selling price of the Cebu International Convention Center (CICC), which is P350 million, so they could finalize the contract to sell with the Mandaue City government.
But Mandaue City legal officer Omar Redula expressed doubt over the amount of P350 million, saying it is quite costly for a dilapidated building alongside the fact that the Joint Venture Agreement indicated the floor price of the project to be only P250 million.
“I was surprised that according to the (Joint Venture Agreement), the amount of P250 million shall be shelled out by the province for the building.
And now that it is already damaged, we suddenly have to pay P350 million?” Redula said.
Redula added that it still has to be determined whether the contractor of the project had asked for additional payment for the project.
In his opinion, Redula said the amount must also be further appraised by the city to avoid discrepancies that might arise by the time the Commission on Audit (COA) will conduct its auditing procedures on the transaction.
“If we pay the amount of P350 million, then COA finds the amount to be excessive, people involved in the transaction might be held criminally liable for it,” Redula said.
The Joint Venture Agreement, which was originally deemed valid for 99 years, was executed on March 10, 2006 during the administration of then Mandaue City mayor Thadeo Ouano and Cebu governor Gwendolyn Garcia.
The agreement involved the construction of CICC building by the Province of Cebu on a 38,136-square meter lot in the North Reclamation Area in Mandaue for a budget of P250 million and at no expense to the city.
After the facility was damaged by an earthquake and typhoon Yolanda in 2013, Mandaue City had expressed interest in purchasing the dilapidated CICC building for P350 million.
Meanwhile, the Mandaue City Council has granted authority to Mayor Gabriel Luis Quisumbing to terminate the joint venture agreement earlier entered into by Ouano and Garcia. Both Quisumbing and Governor Davide will be signing the termination of joint venture agreement. The date for the signing of the Mutual Termination of the Joint Venture Agreement and the Contract to Sell has yet to be determined.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of Cebudailynews. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
