Cicc Accounting By Cebu Gov. Gwen Garcia On Feb. 26, 2009

LOWER GROUND FLOOR PLAN (Area=8,058.42 sq. m.)

UPPER GROUND FLOOR PLAN (Area=8,968.36 sq. m.)

SECOND FLOOR PLAN (Area=5,256.66 sq. m.)

TOTAL FLOOR AREA DESCRIPTION

QTY

LENGTH (m)

WIDTH (m)

AREA (m²)

A. LOWER GROUND FLOOR PLAN

8,058.42

B. UPPER GROUND FLOOR PLAN

8,968.36

C. SECOND FLOOR

5,256.66

D. ROOF DECK

2,052.04

E. GUARD HOUSE

1

1.60

1.60

2.56

F. PUMP ROOM

1

4.00

4.75

19.00

G. MEZZANINE @ PLENARY HALL

1

14.00

2.00

28.00

1

5.60

10.50

58.80

H. POWER HOUSE

1

8.00

12.00

96.00

I. CANOPY

1

18.00

25.00

450.00

1

13.50

5.41

73.04

1

13.50

23.80

321.30

1

1.90

9.62

18.28

1

17.00

17.00

289.00

J. HELIPAD

TOTAL

25,691.45

ADDITIONAL CLAIMS OF WT CONSTRUCTION UNDER LITIGATION

P261,217,866.66

“WT CONSTRUCTION, INC. vs. PROVINCE OF CEBU” (Civil Case No. CEB-34012 For: Sum of Money) This is a case for Sum of Money filed by plaintiff WT Construction, Inc. against defendant Province of Cebu for the payment of its alleged extra works, in the total amount of P261,217,866.66 plus interests, damages, litigation expenses and attorney’s fees, in connection with the construction of the Cebu International Convention Center (CICC) owned by defendant Province of Cebu.

CASE STATUS Still pending before the Regional Trial Court, Branch 6, Cebu City.

Total Land Area = 4.1 has Source of Fund: DBP Loan (P 475 M) Pre-Planning & Engineering Design Demolition of Existing Structures Site Development Works Hotel Building

12,299,966.40 453,750.00 65,830,994.38 223,955,301.82

Convention Center (flr. area = 2,095 sq. m.)

59,011,386.61

Dormitories

33,390,888.46

Entrance Pavilion

2,322,102.36

Chapel

5,640,553.41

Multi-Purpose Area Kiosk TOTAL

581,371.73 6,512,564.83 409,998,880.00

ITEMS

CICC

INHCC

Concrete Piles w/ tie beam

Spread footing w/ tie beam

Structural steel

Conventional reinforced concrete

Elevator

4

0

Escalator

2

0

Helipad

1

0

2,000 kva

0

Centralized Airconditioned

1

1

Fire Alarm System

1

1

Closed Circuit Television (CCTV) System

1

1

Public Address/ Background Music

1

1

Foundation Building Structure

Backup Generator Set

ITEMS

CICC

INHCC

BUILDING STRUCTURE Total Land Area No. of Storeys

4.3 has

4.1 has

3

1

Total Floor Area

25,691.45 sq.m.

2,095 sq.m.

Total Cost

779,527,113.65

71,311,353.01

Cost per sq.m.

30,341.88

34,038.83

SITE DEVELOPMENT Total Area

34,216.66 sq. m.

29,158 sq. m.

Total Cost

55,000,253.00

65,830,994.38

Cost per sq.m.

1,607.41

2,257.73

Completion Period

8 mos. 05/’06 – 12/’06

2 yrs. 12/’06 – 12/’08

Construction Cost Handbook Philippines 2006 by “Davis Langdon & Seah”

PESO/m² DESCRIPTION DOMESTIC Average standard apartments, high rise Luxury apartments, high rise Town houses Individuals prestige houses OFFICE/COMMERCIALS Average standard office, high rise Prestige office, high rise Shopping Centers OTHERS Carparks, above ground

BUILDING

SERVICES

TOTAL

23,500 28,200 18,000 32,200

4,550 – 7,100 7,450 – 11,700 2,100 – 2,970 6,200 – 9,950

26,850 - 30,600 33,850 - 39,900 17,100 - 20,970 33,200 - 42,150

20,000 – 22,000 21,000 – 23,000 11,000 – 12,000

7,400 – 9,550 8,600 – 13,300 6,400 – 10,400

27,400 - 31,550 29,600 - 36,300 17,400 - 22,400

8,800 – 10,200

3,100 – 4,900

11,900 – 15,100

22,300 26,400 15,000 27,000

– – – –

Construction Cost Handbook Philippines 2006 by “Davis Langdon & Seah” PESO/M² DESCRIPTION

TOTAL SERVICES

ELECTRICAL SERVICES

MECHANICAL SERVICES

FIRE SERVICES

LIFTS / ESCALATOR

PLUMBING SERVICES

4,550 - 7,100

2,500 - 3,100

-

450 - 750

600 - 1,500

1,000 - 1,750

DOMESTIC Average standard apartments, high rise

7,450 - 11,700

3,000 - 4,100

1,900 - 2,950

450 - 750

800 - 1,500

1,300 - 2,400

Luxury apartments, high rise

2,100 - 2,970

,400 - 1,770

-

-

-

700 - 1,200

Town houses

6,200 - 9,950

1,700 - 3,500

2,100 - 2,750

-

-

2,400 - 3,700

7,400 - 9,550

2,500 - 3,000

2,100 - 2,650

500 - 700

1,600 - 2,200

700 - 1,000

8,600 - 13,300

2,800 - 4,900

2,400 - 3,250

500 - 700

1,900 - 2,900

1,000 - 1,550

6,400 - 10,400

2,600 - 3,800

2,100 - 3,200

450 - 650

700 - 1,700

550 - 1,000

3,100 – 4,900

1,100 – 1,650

-

400 - 650

1,100 – 1,700

500 - 900

Individuals prestige houses OFFICE/COMMERCIALS Average standard office, high rise Prestige office, high rise Shopping Centers OTHERS Carparks, above ground

Using the Construction Cost Handbook Philippines 2006 by “Davis Langdon & Seah” PESO/m² DESCRIPTION

BUILDING

SERVICES

TOTAL COST

Cebu International Convention Center (CICC) Floor Area = 25,691

@ 20,000 – @ 7,400 – 22,000 9,550 513,800,000 – 190,113,400 – 565,202,000 245,349,050

@ 27,400 – 31,550 703,913,400 – 810,551,050

Carparks ground level Area = 34,216

@ 8,800 – @ * 1,100 – 10,200 1,650 301,100,800 – 37,637,600 – 349,003,200 56,456,400

@ 9,900 – 11,850 338,738,400405,459,600

OVERALL TOTAL

814,900,800 – 227,751,000 – 914,205,200 301,805,450

1,042,651,800 – 1,216,010,650

* On carparks, only electrical services where considered

Based on the Certification of Peter Hackman, Director of Davis Langdon & Seah Philippines, Inc. The prevailing unit rates for the following construction projects:

Total Floor Area of CICC

25,691 sq.m.

Cost per sq.m.

Php 26,900.00 to Php 33,150.00

Total Cost of CICC

Php 691,087,900.00 to Php 851,656,650.00 Note: Excluding Carpark

Excluding Carpark

LOWEST BIDDER

WHY REVISE THE CICC FOUNDATION?

The following are justifications and comparative analysis of the change in foundation design from the original mat foundation design of the Megadome to the new Cebu International Convention Center (CICC); to wit:

SUBSTRUCTURE COMPARATIVE ANALYSIS CICC DESIGN

MEGADOME DESIGN

1.

Pile Foundation

1.

Mat (Ring) Foundation at 6 meter in depth

2.

No dewatering, no deep excavation, no slope protection, no disposal of soil and water

2.

Requires massive dewatering; massive water disposal thus environmentally harmful and expensive

3.

Not costly; simpler construction; low risk; shorter construction time

3.

Requires large deep excavation; massive soil disposal; environmentally harmful, expensive; equipment extensive

4.

Environmentally friendly; no damage to adjacent utilities, roads, structures

4.

5.

More noise due to piling works

5.

Requires large excavation slop protection, very expensive; risky; takes very long time Likelihood of damage to adjacent lots/utilities/road if slope protection fails or ineffective, or due to dewatering process

6.

In summary, lesser cost, faster and simpler construction, environment friendly

6.

Less noise

7.

In summary, very expensive, more complicated, takes longer construction duration; environmentally harmful

ALLOCATION

= P100,000,000.00

ORIGINAL DESIGN CONTRACT

= P 84,487,185.65

(MATTING FOUNDATION) REVISED DESIGN

= P 59,611,997.92

(CONCRETE PILES) SAVINGS

= P 24,875,187.73

Republic of the Philippines Congress of the Philippines Metro Manila Twelfth Congress Second Regular Session Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand two. Republic Act No. 9184 January 10, 2003 AN ACT PROVIDING FOR THE MODERNIZATION, STANDARIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES

ARTICLE XVI ALTERNATIVE METHODS OF PROCUREMENT Section 48. Alternative Methods. - Subject to the prior approval of the Head of the Procuring Entity or his duly authorized representative, and whenever justified by the conditions provided in this Act, the Procuring Entity may, in order to promote economy and efficiency, resort to any of the following alternative methods of Procurement: a. Limited Source Bidding, otherwise known as Selective Bidding - a method of Procurement that involves direct invitation to bid by the Procuring Entity from a set of pre-selected suppliers or consultants with known experience and proven capability relative to the requirements of a particular contract; e. Negotiated Procurement - a method of Procurement that may be resorted under the extraordinary circumstances provided for in Section 53 of this Act and other instances that shall be specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a technically, legally and financially capable supplier, contractor or consultant. In all instances, the Procuring Entity shall ensure that the most advantageous price for the government is obtained.

Section 49. Limited Source Bidding. - Limited Source Bidding may be resorted to only in any of the following conditions: b. Procurement of highly specialized types of Goods and Consulting Services which are known to be obtainable only from a limited number of sources; or b. Procurement of major plant components where it is deemed advantageous to limit the bidding to known eligible bidders in order to maintain an optimum and uniform level of quality and performance of the plant as a whole.

Section 53. Negotiated Procurement. - Negotiated Procurement shall be allowed only in the following instances: a. In case of two (2) failed bidding as provided in Section 35 hereof; b. In case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or manmade calamities or other causes where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities; c. Take-over of contracts, which have been rescinded or terminated for causes provided for in the contract and existing laws, where immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public services, infrastructure facilities and other public utilities;

Section 53. Negotiated Procurement. - Negotiated Procurement shall be allowed only in the following instances: d. Where the subject contract is adjacent or contiguous to an ongoing infrastructure project, as defined in the IRR: Provided, however, That the original contract is the result of a Competitive Bidding; the subject contract to be negotiated has similar or related scopes of work; it is within the contracting capacity of the contractor; the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; the amount involved does not exceed the amount of the ongoing project; and, the contractor has no negative slippage: Provided, further, That negotiations for the procurement are commenced before the expiry of the original contract. Wherever applicable, the principle shall also govern consultancy contract, where the consultants have unique experience and expertise to deliver the required service; or, e. Subject to the guidelines specified in the IRR, purchases of Goods from another agency of the government, such as the Procurement Service of the DBM, which is tasked with a centralized procurement of commonly used Goods for the government in accordance with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.

While Art. 54.1 of the IRR of RA 9184, on splitting of contracts, provides as follows: “Splitting of Government Contracts is not allowed. Splitting of Government Contracts means the division or breaking up of Government Contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or sub-contracts for the purpose of evading or circumventing the requirements of law and this IRR-A, especially the necessity of public bidding and the requirements for the alternative methods of procurement.”

In the First Place, there is no division or breaking up of Government Contracts into smaller quantities and amounts or dividing contract implementation into artificial phases or sub-contracts. As earlier shown, as far as the CICC is concerned, there is no single contract covering its procurement or implementation. Since there is no single contract, there could not be any splitting of said single contract. There is also no division of contract implementation into artificial phases or sub-contracts because individual contracts were entered into with the concerned suppliers or contractors, which contracts are not artificial or sub-contracts.

In the Second Place, there is no evading or circumventing of the requirements of law, especially the necessity of public bidding and the requirements for the alternative methods of procurement. It is of note that, as earlier shown, bidding, although limited ones, were conducted by the Province of Cebu in the procurement of said items / works. Besides, the requirements, as provided under Section 48 (a), in relation to Section 49 of Republic Act (RA) No. 9184 and its Implementing Rules and Regulations (IRR), for Limited Source Bidding, as an alternative method of procurement, have been duly complied with, as shown in the report in this regard.

SAMPLE COMPUTATION: SPECIALTY CONTRACTOR/SUPPLIER (KPI ELEVATOR, INC) TOTAL COST

=

P 7,270,140.00

Breakdown: Basic Equipment

= P 5,310,140.00

Installation & Locally supplied Materials = P 1,960,000.00 (12% VAT Inclusive)

---------------------P 7,270,140.00

MAIN CONTRACTOR (ALL-IN) COST FROM SPECIALTY CONTRACTOR = P 7,270,140.00 Plus: Indirect Cost, 30% (OCM, VAT/Tax, Profit) = P 2,181,042.00 -----------------------P 9,451,182.00 IN EFFECT DIFFERENCE

=

P 2,181,042.00

Said charge, however, has no basis in fact and in law. Sections 47 and 65 par. 5 of R.A. 9184 (Government Procurement and Reform Act) prohibit only the participation and award of government contracts to a relative of the Governor within the 3rd civil degree. Karen Fiel Tio, however, is not a relative of the Governor within the said prohibited degree, as provided under Art. 966 of the Civil Code of the Philippines.

De g re Civ il 2n d eg ree

married to Veronica S. Fiel

re eg

il D Civ

Civ il D

Antero Fiel

4th e

1s t

re e

Gov. Gwen F. Garcia

eg

married to Gov. Pablo P. Garcia

il D Civ

Judge Esperanza Fiel Garcia

Consuelo T. Fiel 3rd

e

Dr. Eutiquiano Fiel

Karen Fiel Tio

“Art. 966. xxx xxx xxx. Thus, a person is two degrees removed from his brother, three from his uncle, who is the brother of his father, four from his first cousin, and so forth.” ( Underscoring and emphasis supplied )

Payment - 12TH Asean Summit = P12,000,000.00