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 AREADESCRIPTION QTY LENGTH (m) WIDTH (m) AREA (m²)

A. LOWER GROUND FLOOR PLAN 8,058.42B. UPPER GROUND FLOOR PLAN 8,968.36C. SECOND FLOOR 5,256.66D. ROOF DECK 2,052.04E. GUARD HOUSE 1 1.60 1.60 2.56F. PUMP ROOM 1 4.00 4.75 19.00G. MEZZANINE @ PLENARY HALL 1 14.00 2.00 28.00

1 5.60 10.50 58.80H. POWER HOUSE 1 8.00 12.00 96.00I. 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 18.28J. HELIPAD 1 17.00 17.00 289.00

TOTAL 25,691.45

ADDITIONAL CLAIMS OF WT CONSTRUCTIONUNDER 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 12,299,966.40Demolition of Existing Structures 453,750.00Site Development Works 65,830,994.38Hotel Building 223,955,301.82Convention Center (flr. area = 2,095 sq. m.) 59,011,386.61Dormitories 33,390,888.46Entrance Pavilion 2,322,102.36Chapel 5,640,553.41Multi-Purpose Area 581,371.73Kiosk 6,512,564.83TOTAL 409,998,880.00

ITEMS CICC INHCCFoundation Concrete Piles

w/ tie beamSpread footing w/

tie beamBuilding Structure

Structural steel Conventional reinforced concreteElevator 4 0

Escalator 2 0Helipad 1 0Backup Generator Set 2,000 kva 0

Centralized Air-conditioned 1 1

Fire Alarm System 1 1

Closed Circuit Television (CCTV) System

1 1

Public Address/ Background Music

1 1

ITEMS CICC INHCC

Total Land Area 4.3 has 4.1 hasNo. of Storeys 3 1

Total Cost 779,527,113.65 71,311,353.01Total Floor Area

25,691.45 sq.m. 2,095 sq.m.

Cost per sq.m. 30,341.88 34,038.83

Completion Period

8 mos.05/’06 – 12/’06

2 yrs.12/’06 – 12/’08

SITE DEVELOPMENT

Total Cost 55,000,253.00 65,830,994.38Total Area 34,216.66 sq. m. 29,158 sq. m.

Cost per sq.m. 1,607.41 2,257.73

BUILDING STRUCTURE

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

PESO/m²DESCRIPTION BUILDING SERVICES TOTAL

DOMESTICAverage standard apartments, high riseLuxury apartments, high riseTown housesIndividuals prestige houses

22,300 – 23,50026,400 – 28,20015,000 – 18,00027,000 – 32,200

4,550 – 7,1007,450 – 11,7002,100 – 2,9706,200 – 9,950

26,850 - 30,60033,850 - 39,90017,100 - 20,970 33,200 - 42,150

OFFICE/COMMERCIALSAverage standard office, high risePrestige office, high riseShopping Centers

20,000 – 22,000

21,000 – 23,00011,000 – 12,000

7,400 – 9,5508,600 – 13,3006,400 – 10,400

27,400 - 31,55029,600 - 36,30017,400 - 22,400

OTHERSCarparks, above ground 8,800 – 10,200 3,100 – 4,900 11,900 –

15,100

PESO/M²

DESCRIPTION TOTALSERVICES

ELECTRICAL SERVICES

MECHANICALSERVICES

FIRESERVICES

LIFTS /ESCALATOR

PLUMBINGSERVICES

DOMESTIC

Average standard apartments, high rise

Luxury apartments, high rise

Town houses

Individuals prestige houses

4,550 - 7,100

7,450 - 11,700

2,100 - 2,970

6,200 - 9,950

2,500 - 3,100

3,000 - 4,100

,400 - 1,770

1,700 - 3,500

-

1,900 - 2,950

-

2,100 - 2,750

450 - 750

450 - 750

-

-

600 - 1,500

800 - 1,500

-

-

1,000 - 1,750

1,300 - 2,400

700 - 1,200

2,400 - 3,700

OFFICE/COMMERCIALS

Average standard office, high rise

Prestige office, high rise

Shopping Centers

7,400 - 9,550

8,600 - 13,300

6,400 - 10,400

2,500 - 3,000

2,800 - 4,900

2,600 - 3,800

2,100 - 2,650

2,400 - 3,250

2,100 - 3,200

500 - 700

500 - 700

450 - 650

1,600 - 2,200

1,900 - 2,900

700 - 1,700

700 - 1,000

1,000 - 1,550

550 - 1,000

OTHERS

Carparks, above ground 3,100 – 4,900 1,100 – 1,650 - 400 - 650 1,100 – 1,700

500 - 900

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

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

PESO/m²DESCRIPTION BUILDING SERVICES TOTAL COSTCebu International Convention Center (CICC) Floor Area = 25,691

@ 20,000 – 22,000513,800,000 – 565,202,000

@ 7,400 – 9,550190,113,400 – 245,349,050

@ 27,400 – 31,550703,913,400 – 810,551,050

Carparks ground level Area = 34,216

@ 8,800 – 10,200301,100,800 – 349,003,200

@ * 1,100 – 1,65037,637,600 – 56,456,400

@ 9,900 – 11,850338,738,400-405,459,600

OVERALL TOTAL

814,900,800 – 914,205,200

227,751,000 – 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 CICCCost per sq.m.

25,691 sq.m.Php 26,900.00 to Php 33,150.00Total 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 DESIGN1. Pile Foundation 1. Mat (Ring) Foundation at 6 meter in depth

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

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

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

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

4. Requires large excavation slop protection, very expensive; risky; takes very long time5. More noise due to piling works 5. 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 PhilippinesCongress of the Philippines

Metro ManilaTwelfth 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, 2003AN ACT PROVIDING FOR THE MODERNIZATION,

STANDARIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES

ARTICLE XVIALTERNATIVE 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:

a. 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 man-made 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 on-going 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.

Gov. Gwen F. Garcia

Judge Esperanza Fiel Garciamarried to Gov. Pablo P. Garcia

Antero Fielmarried to Veronica S. Fiel

Dr. Eutiquiano Fiel Consuelo T. Fiel

Karen Fiel Tio

1st C

ivil D

egre

e

3rd Civil Degree2nd

Civil

Deg

ree

4th Civil Degree

“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