Pavia housing deal may end Sept. 18
Iloilo City Mayor Jed Patrick Mabilog is considering a possible contract rescission and takeover of the city’s controversial housing project in Ungka, Pavia town from contractor Ace Builder Enterprises by September 18.
Mabilog said he has instructed City Legal Officer Jose Junio Jacela to draft a letter citing the deficiencies committed by the contractor such as the use of substandard construction materials for the roof, ceiling, iron grills and the poor quality of sand and gravel as reasons for breach of contract on top of abandonment by the project contractor.
He said he has also instructed former Vice Mayor Victor Facultad, chief of the Inventory Commission, to inspect the abandoned project site and recommend what should be done with the project.
Mabilog said he wants a closure of the housing project issue so that the city government can move on and see possible beneficial uses of the housing project. The city may sell the lot or allow long term lease for the construction of commercial building or an IT park.
The project, costing some P130 million, was started by former Mayor Mansueto Malabor, but was abandoned in 2004 during the time of former Mayor Jerry Treñas after it was known that substandard materials were used in the project.
The project was earmarked as a low-cost housing for city government employees in an 11-hectare lot owned by the city in Brgy. Ungka, Pavia town.
More than 300 housing units were already constructed out of contracted 420 units but these were abandoned by the contractor after the city refused to pay its fourth billing due to the substandard materials controversy.
Mabilog said despite the city already paid more than P81 million in principal loan and interests, the total amount of loan was not fully consummated and remained with the Land Bank of the Philippines. PNA
