Savings of P36M seen in construction of new City Hall
The city could save as much as P36 million with the decision of city officials to reduce the proposed new City Hall building from the original eight stories to seven stories.
The reduction in the number of floors came after the Pacific-Orient Consultants and Management Co. Inc. appraised Mayor Jerry Treñas and the members of the city council on the increase of the project cost based on the original plan.
Based on current project estimates the construction cost would increase from the original P378,987,675 to P463,883,922.
Conrado Goco, general manager of Pacific-Orient, earlier said "the increase in cost is attributed mainly to the increase in the cost of fuel, which affected the cost of construction materials like rebars, cement, electrical wires, tiles, pipes and fitting and architectural materials."
The chief executive earlier said there's no need for the city government to borrow money for the construction of the new Iloilo City Hall. He said the city will have to stick with the original budget for the construction of the new Iloilo City Hall building which is P379 million.
The funding for the proposed construction of the new Iloilo City Hall building was obtained from a loan from the Land Bank of the Philippines which is P350 million and the rest of the budget was taken from the city's collection on tax and penalties from Government Owned and Controlled Corporations (GOCCs).