Iligan city assures Palao Market completion

ILIGAN City ― Residents of Iligan City can expect the completion of the Palao market, as assured by the city government despite ongoing delays.

Dr. Darwin Manubag, the city administrator, informed reporters yesterday that the Construction Industry Arbitration Commission (CIAC) has yet to produce its report on the inspection conducted on December 11, 2023. Nonetheless, he emphasized that Mayor Frederick Siao’s administration is steadfast in its resolve to see the project through to completion.

Manubag noted the city’s collaboration with City Legal Officer Atty. Roberto Padilla to navigate the situation. Despite the prolonged delay in CIAC’s report, Padilla affirmed the city’s ability to proceed with the project.

One of the key steps ahead involves formulating Revised Correction Plans, which will be submitted to the Bids and Awards Committee. Manubag estimated a timeline of six to eight months for the project’s completion.

Several discrepancies in the project’s execution by the previous contractor, BM Marketing, have necessitated corrective measures. These include leakages on upper floors, improper distance from the floor to the washing area, and deviations from specified equipment, such as using “Fiji” instead of “Fuji” elevators.

Initially budgeted at P500 million, including provisions for underground parking, the project’s cost has escalated to P590 million — former City Administrator Atty. Leo Zaragoza clarified that even with the elimination of subterranean parking, expenses surged.

Under former Mayor Celso G. Regencia’s administration, assurances were made that the project would proceed without incurring loans. Commencing in February 2020 with a slated completion date of December 31, 2021, the project faced numerous setbacks, prompting multiple extension requests from the contractor, citing factors like the Covid-19 pandemic and adverse weather conditions.

With the project’s progress falling significantly behind schedule, the Siao administration’s Project Implementation Unit reported a 35 percent slippage, far exceeding the 15 percent allowance mandated by law.

Consequently, the city terminated its contract with BM Marketing on April 14, 2023.

BM Marketing swiftly responded by initiating legal action against the city in a regional trial court. However, the court ruled that such cases fall under the jurisdiction of CIAC, redirecting the dispute to the appropriate forum for resolution.