P1.3-B Capitol resource center ‘won’t be a burden’
With an occupancy rate target of 50 percent, the Provincial Capitol’s 20-story Resource Center is expected to generate around P61 million in its first year of operation.
During the groundbreaking ceremony Monday morning, Feb. 18, Gov. Hilario Davide III assured taxpayers that the P1.3-billion facility would not be a burden to them.
“The rental, for instance, will help pay for the amortizations at the bank. If the Province ends up shelling out money for this purpose, it will be very minimal,” he said in Cebuano.
The governor slammed his administration’s critics by telling them that only the court could stop the project.
“We proceeded (with) the groundbreaking,” he said.
The Province has taken out a P1.3-billion loan from the Development Bank of the Philippines to build the resource center.
Aside from the principal amount, the Capitol will pay an annual interest of 2.9 percent, or around P100 million in total. The loan agreement covers a 10-year term.
Plans for the building
The facility’s first four floors will be used for pay parking, while the succeeding six floors will be used for provincial offices. The next 10 stories, on the other hand, will be leased out to government agencies and commercial firms.
Provincial Budget Officer Danilo Rodas said the facility is expected to achieve a 50-percent occupancy rate in its first year of operation.
The four-story parking area can accommodate 183 vehicles. The estimated parking fee is P30 for the first two hours.
The available leasable floor area per level is 2,218 square meters with a rental rate of P550 per square meter.
The Province will also lease out 776 square meters of the ground floor to business establishments at P950 per square meter.
“Our target is to reach an 80 percent occupancy rate in the next four years. Our targeted income in the next 10 years is P1 billion. These estimates are based on the report of our consultant, AS Enriquez Engineering. They also based their report on rental fees in business establishments surrounding the Capitol,” Rodas said in Cebuano.
Aside from Davide, also present during the groundbreaking ceremony were Vice Gov. Agnes Magpale, Capitol department heads and officials of WT Construction Inc., the project contractor.
The project had received some flak because “it would diminish the historical significance of the Capitol building.”
The opposition also questioned the timing of the project, saying there were other pressing issues the Capitol should focus on.