Independent valuation sought for CICC
HOW MUCH? The Cebu International Convention Center after the 7.2 magnitude earthquake on Oct. 15, 2014 is up for sale. The Cebu provincial government and potential buyer, the Mandaue City government, are sizing up the value of the property that was built for over P800 million for the 2007 Asean Summit. (CDN PHOTO/ JUNJIE MENDOZA)
How much is the Cebu International Convention Center (CICC) really worth?
A disparity in the market value assessment between the Mandaue City Government and Cebu Province is prompting the CICC Management Board to consult a third party.
“The province is selling (the property) for about P600 million, but our assessment of the property is around P200 million only,” said Carlo Fortuna, one of Mandaue city’s representatives in the CICC board.
Fortuna said the province computed its offer by deducting the depreciation cost and cost of damage caused by the 7.2-magnitude earthquake last year, from the construction cost of P800 million.
However, the appraisal report of Mandaue City submitted in last month’s board meeting showed that the property was only worth P200 million after deducting the cost of repairs submitted by the provincial engineering office, from the actual cost.
Fortuna said Cebu Gov. Hilario Davide III is aware of Mandaue City’s appraisal which was brought up in the meeting. Provincial Administrator Mark Tolentino presided over the meeting on behalf of the governor.
Fortuna said the management may ask the Commission on Audit (COA), the Bureau of Local Government Finance (BLGF) or government banks to determine the market value of the property.
Fortuna said he is hopeful that the board will get the new figures by August.
The lawyer said Mandaue City is still keen on purchasing the CICC which is built on city-owned land but has to settle the disparity in values first.
“If the figure will not change, it will be difficult for us to meet the suggested amount. There is always a limit to how much we can give and right now, our figure is P200 million. But if it’s possible to stretch that figure and the province is willing to settle for something lower, then it will be fine,” Fortuna added.
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