City to increase LBP credit line by P86M for city hall bldg project
The city government will have to increase its credit line at Land Bank of the Philippines (LBP) to some P86 million in order to finance the proposed seven-storey new city hall building. In the recent estimate, the construction would cost the city P465,039,000.
Mayor Jerry Treñas said they will go back to the LBP for the restructuring of their credit line. The city's credit line with the bank is only P350 million for the construction of the proposed city hall building.
He clarified the city has yet to officially loan the P350 million from the bank. The P350 million is only the city's credit line. The loan has yet to be consummated between city government and the bank.
With the recent estimates for a seven-storey building, the city has to avail of additional credit line of P86,052,000 to meet its financial requirements. The chief executive has to seek authority from the Sangguniang Panlungsod before the mayor is allowed to represent the city in any bank transactions such as the city's application for loan.
Earlier, the city also collected some P20 million of taxes from government-owned and controlled corporations for the construction of the city hall building as additional funds to finance the construction.
According to Treñas, the project engineer tasked by Architect Willy Coscolluela is still finalizing the details on the cost of the construction. As soon as the details are finalized, they will decide on the additional loan they want to apply before the bank.
Earlier, it is the Pacific-Orient Consultants & Management Co. Inc. that prepared the estimates for the proposed city hall building. In the 2006 estimates, an eight-storey building costs P378,987,675.
In March 2008 estimates for the construction cost of the city hall building only amounted to P463,883,922. Six months later, the estimated construction cost already reached to P465,039,000. The two sets of estimates was prepared by the Pacific-Orient Consultants & Management Co. Inc. through its General Manager Conrado Goco.
The seven-storey building will occupy a space of 13,158 square meters. The P465,039,000 costing does not include the installation of air conditioning units.