For new market, CICC purchase Mandaue eyes securing P600M loan

CEBU, Philippines – Mandaue City is set to enter into a P600 million loan with government banks to finance the construction of the new public market and the possible purchase of the Cebu International Convention Center from Cebu provincial government.

City Treasurer Regal Oliva said the construction of a new public market in Barangay Centro will approximately cost P500 million while the remaining P100 million will be used as downpayment for the CICC purchase should the city finally decide to buy it out from the Capitol.

Oliva said the city may enter into a loan agreement next year with any of the three government banks: the Development Bank of the Philippines, Landbank of the Philippines and the Veterans Bank.

Already, Mandaue was able to get a certification from the Bureau of Local Government and Finance that the city can borrow up to P1 billion from banks.

Oliva said the city will need to borrow money to meet the proposed P2.7 billion budget for 2015 since the city's projected income for next year is only P2.1 billion.

Tax revenue hike

Aside from borrowing money, Oliva said the city also needs to increase its tax revenues.

To do this, he said, the City Council has to pass the proposed Revised Revenue Code and another proposed ordinance updating the City's Schedule of Market Values.

Mayor Jonas Cortes plans to have the CICC renovated and turned into Mandaue Investment Promotions and Action Center wherein all the city's products can be showcased inside.

Cortes said this will be consistent with the city's aim to be the primary source of high quality products in Central Visayas.

Both the old public market and CICC were totally devastated when the city was among those hit by the 7.2-magnitude earthquake and super typhoon Yolanda.

Earlier, Cortes also said they have finally decided to construct the market to where it was used to be in Barangay Centro after they found out that the existing market at the back of the City Sports and Cultural Complex is not an ideal place for the market goers.

"Imagine kaluoy sa mga tiguwang nga motabok sa major thoroughfare, naka-cause na nuon og samot nga traffic," Cortes said.

Cortes said once the market is constructed back in Barangay Centro, A. Soriano Street, which is the way towards the Mactan-Cebu International Airport, will be decongested.

He said the new public market will be ready for use in 2016.