The Cebu Provincial Government plans to enter into a P1.5 billion-loan for the construction of a 12-storey, multi-purpose building.
This development transpired after a closed-door caucus of the Provincial Board (PB) with Governor Hilario Davide III on Monday morning.
The provincial government will borrow money from the Development Bank of the Philippines (DBP).
The amount to be loaned will cover the procurement of materials, labor, consultation fees, and the other expenses of the construction of the building.
Vice Governor Agnes Magpale said that they have decided to enter into a 10-year loan agreement from the DBP since the latter offers the lowest interest rate.
The building will rise on the site of the now defunct Bureau of Agriculture Extension (Baex) building.
The design and feasibility study of the building was created by a private architectural firm, AS Enriquez Engineering Consultancy.
“The consultant also told us that the expenses may also increase considering that the costs of materials needed may have increased due to Train (Tax Reform Acceleration and Inclusion) Law,” the governor said.