To construct government center, others: Mandaue needs P3 billion

CEBU, Philippines — The Mandaue City government is set to borrow P3 billion for the construction of a new government center and other infrastructure developments that aim to centralize government offices and other agencies.

In his recent State of the City Address (SOCA), Mayor Jonas Cortes said that Mandaue has grown exponentially through the years, yet the seat of government remains the same.

He said that an iconic government center has been a dream of Mandauehanons and is now in the works – a government center that every Mandauehanons will be proud of.

The proposed government center will be located at the current site of Cebu International Convention Center, which is now dilapidated. It was destroyed by the magnitude 7.2 earthquake that hit Cebu on October 15, 2013 and Super Typhoon Yolanda in the same year.

The CICC was constructed during the time of Cebu Governor Gwendolyn Garcia in 2006 and was used as the venue for the 12th ASEAN Summit in 2007 wherein 17 heads of state attended.

“Given the operational expenses of the City of Mandaue, there is a need to enter into a loan agreement/facility in order to fund the foregoing projects,” read part of the ordinance.

The other contiguous infrastructure developments to be covered by the loan agreements includes, but is not limited to, the construction of a convention center, transport terminal, parks, and parking building relative to and in connection with the government center.

In a joint-committee report that the City Council has approved, the Mandaue Presidencia had stood the test of time, despite being used as a garrison by the Japanese imperial forces during World War I.

The historical edifice remained functional, but its size was no longer proportionate to the increasing government workers that will serve the 364,116 Mandauehanons.

“With the continuous influx of migrant families, comes the increasing needs of its populace and the urgency to upgrade the services and facilities of the local government unit of Mandaue City in order to efficiently serve the Mandauehanons,” read part of the joint-committee report.

It said that to efficiently serve its growing constituents, the historical Mandaue Presidencia, must accommodate the increasing number of civil servants, adapt to the technological advances and innovations and perform resilient, inclusive, and green operations.

However, further expansion of the existing city hall will not be possible due to area constraints.

“One of the priority projects reflected in the 2023-2028 Comprehensive Development Plan (CDP) is a new government center, as it was voted as the topmost priority by the different stakeholders of the city,” it said.

The city intends to build a green building, which would typically require more upfront investment due to the cost of high-performance building materials and technologies.

Green building certifications can also add to the cost of a green building, but these can also offer long term benefits.

The project will have an estimated total gross floor area of 43,531 square meters.

To implement the project, the study recommended financing through a loan facility, as huge initial investment is required.

“The debt used to finance the construction of the project is paid from the generated revenue by the city and from the rentable commercial spaces,” it said.

The loan, based on cash flow, would be up to a 15-year term inclusive of up to three years grace period on principal and the interest rate shall be based on prevailing rate at the time of drawdown with a floor rate of 3.5 percent per annum, fixed for one year and is reviewable annually thereafter based on compensating business.

The resolution is proposed by Councilors Malcolm A. Sanchez, Jimmy C. Lumapas, Jesus P. Arcilla, Jr., Marie Immaline Cortes-Zafra, Cynthia Cinco-Remedio, Jennifer S. Del Mar, Editha Flores-Cabahug, Oscar J. Del Castillo, Jr., Dallie Mae T. Cabatingan and Ernie N. Manatad.  — (FREEMAN)