Coalition questions P3B loan for Mandaue City gov’t center

MANDAUE CITY, Philippines – Members of the ‘Save Mandaue Coalition’ (SMC) have expressed their strong objection to Mandaue City’s P3 billion DBP loan intended to fund the new government center at the former Cebu International Convention Center (CICC) site.

During a press conference on Wednesday, the group argued against the city’s loan agreement, advocating instead for a Public-Private Partnership (PPP), which they claim would come at no cost to the city and would avoid burdening taxpayers.

They believe that this substantial financial commitment is misplaced and does not address the most pressing issues facing the community.

SMC emphasized that they are not against the construction of the new city hall but are concerned about the financial impact of the loan.

The city plans to build the government center to centralize the services of local government offices and national agencies, making it more accessible and convenient for residents. Currently, these offices are scattered across different areas.

However, the group argued that implementing PPP as a long-term and concrete solution would help resolve the pressing issues Mandauehanons are facing.

They highlighted that, instead of investing in a new facility, the administration should prioritize pressing issues such as addressing flood problems, responding to COA red flags related to the use of public funds, assisting fire victims, and improving healthcare and school buildings.

They also noted that a PPP could foster economic growth by creating more job opportunities and encouraging investments in infrastructure and services.

The group cited the Mactan-Cebu International Airport and the Cebu-Cordova Expressway (CCLEX) as examples of successful PPP projects.

A Public-Private Partnership is a collaborative arrangement between government entities and private sector companies to finance, build, and operate projects or services that would typically fall under the purview of the public sector. The essence of a PPP lies in leveraging the strengths and resources of both sectors to deliver public goods or services more effectively and efficiently.

“Mao nang mo-oppose gyud mi sa P3 billion because there is a solution nga dili nata need mangutang. Kita nga mga indibidwal di ba, allergy man sa utang? We don’t want to pay tax either, makakita mo sa inyo’ng pay slip, dagko kaayo og tax, are you not questioning that kung para asa na? And you’ll see tons of projects that are unfinished,” said SMC Spokesperson Elaine Joyce Bacunador.

“Why do they need the P3 billion so urgently nga gusto nila nga ma-approve diha-diha dayon? What is the interest in it? Is it for the benefit of Mandauehanons? If not, what is it? If they really want this, then provide us with transparency and accountability. If they really want it, then please remove corruption. If they really want it, then let us feel the good governance nga dugay na namong gipangayo,” she added.

“Why not PPP?”

In an earlier interview, City Treasurer Atty. Regal Oliva said that the city conducted a study to determine whether to use the city’s funds, implement PPP, or enter into a loan.

Oliva mentioned that if the government center were constructed using a PPP, there might be issues of control and authority limitations.

Oliva also noted that a PPP might not be beneficial to the city because the private sector is expected to occupy the first few floors of the building and other facilities.

“How iconic can it be if it is run by private entities and we don’t have a say in the use of our public building? It’s supposed to be a public building, tapos ang mga tawo dili pasudlong kay mao ni. We are preventing future misunderstandings. Wala tay freedom to use our city hall, we will not be liberated to encourage more people to visit it kay daghan og restriction ang private management,” said Oliva.

The city treasurer added that the city can enter into a PPP for other projects, such as the planned development behind the former CICC compound.

Oliva also emphasized that, in addition to the government center, the city plans to construct support facilities such as terminals and a convention center, from which the city is expected to generate income.

Allocation

Oliva said that even with the P3 billion loan, the city can still address community needs.

She mentioned that the city has increased the budget for Mandaue City College and the City Hospital for 2025.

Financial Obligations

In a separate interview on Monday, Sept. 2, Acting Vice Mayor Nerissa Soon-Ruiz also voiced her support for PPP.

Soon-Ruiz acknowledged that the city needs a new city hall but expressed her preference for a PPP to ease the financial burden on the city.

She explained that the city would not only need to repay the P3 billion loan but also cover the principal amount and interest.

Soon-Ruiz said that the city would pay a total of P305 million per year, with P200 million going towards the principal and 3.5 percent interest amounting to P105 million annually.

This means that over the course of 15 years, the total interest and principal payments would accumulate to P1.575 billion, bringing the overall debt to P4.575 billion by the end of the loan term.

“Approved”

The ordinance ratifying the P3 billion loan agreement was approved on second reading by the city council last Monday. It is expected to undergo a third and final reading next week.

The coalition hopes that their concerns will be heard and is advocating for a public hearing.

In a statement sent to the media, City Public Information Officer Karla Victoria Cortes said they respect the coalition’s right to voice their opinions. However, she questioned the representation of the coalition.

“Correct me if I am wrong but diba a coalition, by its very definition, should represent a broad and united front of organizations, groups, and individuals. It’s interesting, then, that what we see here appears to be more of a small gathering of individuals rather than a true coalition. While we respect their right to voice their opinions—freedom of speech is, after all, a cornerstone of our democracy—we must be careful not to let this become a political spectacle,” said Cortes.

“It’s important to understand that the Mandaue City LGU currently operates from 19 different locations, each serving the public in its own capacity. The government center is not just a building; it is a step toward streamlining services and making life easier for our citizens. Efficiency, after all, is not just a luxury—it’s a necessity,” she added.

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