Construction of Controversial Naga Coliseum to Resume

NAGA CITY --- After the long wait, site blessing and resumption of construction work at the stalled Naga City Coliseum have been set at 8:00 a.m. on Friday, August 28, at the Central Business District 2, fronting the monolithic SM City Naga.

Naga City Mayor Jesse M. Robredo said that "after all the technical consultations and following competitive search for the cheapest loan package and transparent public bidding, we are now finally resuming the construction of the Naga City Coliseum."

The simple ceremonies on Friday will mark the preceding preparatory stages and kick off actual construction work. City Engineer Chito Palmiano will present the coliseum's project brief before the guests and members of the local media who have been invited to witness the event.

The structural design of the coliseum's roofing underwent major revisions taking into consideration: a) the recommendations of the Association of Structural Engineers of the Philippines which sent two experts from Metro Manila to assess the structure, b) the recommendations of the local chapter of the Philippine Institute of Civil Engineers which looked into the superstructure and construction methodology, and c) the recommendations of the United Architect of the Philippines that focused on the aesthetics and compliance with green environmental standards.

The city hall exerted every effort to keep financing cost down where the best offer was a loan that charges only 8.7% per annum, with fees waived and the tax burden shifted off the city government.

Bidding for the resumed construction was done in open and competitive manner where 9 bidders participated in the first bidding and 8 during the second bidding. The bidding was to be repeated because on the first the prospective bidders failed to adhere to some of the key requirements of the procurement law. As a result, the project was awarded for only P122 million, generating a savings of P11 million from the original cost estimate.

ITP Construction, the winning bidder, was evaluated not only on the basis of its submitted documents but on its actual track record duly verified, assessed, and post qualified by the Bids and Awards Committee, given the fact of the huge dip in the bid price.

Mayor Robredo assured the coliseum loan will not affect the current level of frontline services that the city government is delivering. He explained debt amortizations will be funded by additional taxes from SM City Naga, initially projected at P20 million next year, as well as from revenues from the coliseum's operation, all of which are new sources of revenue.

A planned terminal at an adjacent city government property will further bolster the income streams mentioned.