City gov’t readying documents to avail another P100M loan
The city government particularly City Treasurer Katherine Tingson is now preparing the documents to increase its credit line from P350 million to P450 million to finance the proposed eight-storey new city hall building.
Mayor Jerry Treñas yesterday said the city treasurer is preparing all the documents for an additional loan of P100 million from the Land Bank of the Philippines for the construction of an eight-storey city hall building. It is a preparation in case the city needs more funds for the proposed city hall building.
Treñas added Tingson is also attending the documents required by the Bureau of Local Government Finance (BLGF) for a local government unit that wants to apply for a loan. The capacity of the local government to pay the applied loan is being checked.
He added the city opted to have an eight-storey building for the city hall. The eight-storey edifice already includes a penthouse which will serve as function areas for different gatherings of the city government.
In last quarter of 2008, the Pacific-Orient Consultants & Management Co. Inc estimated the construction cost of a seven-storey building which occupies a space of 13,158 square meters to P465,039,000. The construction estimates increased by more than P3 million in the March 2008 estimates made by the same firm. In March 2008, the construction cost of a seven-storey edifice is P463,883,922.
The city government wants to avail of additional loan from Land Bank of the Philippines after the construction cost tremendously increased from the time they realized the plan to have its own city hall building. In the 2006 estimate, an eight-storey building would cost P378,987,675.
When the plan to construct a city hall building was finalized in 2006, the construction cost for an eight-storey building is only P350 million. The city’s credit line with the bank was based on the estimated P350 million costing. The first estimate prepared by the Pacific-Orient Consultants & Management Co. Inc is only P378,987,675.
The mayor said Architect Willy Coscolluela will submit the program of work and estimates end of January. The decrease in the cost of construction materials will greatly help the city in firming up with their budgetary needs for the construction of the proposed city hall.