The Cebu Provincial Government has allocated P150 million from its development fund this year to begin the rehabilitation of the Marcelo Fernan Palace of Justice. This multi-year project aims to restore the building, which was abandoned after the 2013 earthquake, and eventually house the Court of Appeals (CA) while reducing office congestion at the Capitol.
Project Overview
Provincial Administrator Joseph Felix Mari "Ace" Durano announced on Tuesday, May 26, 2026, that the initial funding will cover the first phase of the rehabilitation. Additional allocations are expected in the coming years to complete the project, with a total estimated cost ranging from P200 million to P400 million. Durano noted that the Capitol plans to make at least part of the building operational before the term of Gov. Pamela Baricuatro ends.
Structural Assessment and Legal Arrangements
Durano confirmed that the building has passed a structural assessment, allowing the Provincial Government to proceed with restoration. The Department of Justice (DOJ) originally constructed the facility on province-owned land. Durano explained that any improvements made on the property will ultimately belong to the landowner, but a new management arrangement with the DOJ is being established since the Provincial Government will fund the rehabilitation.
"If we go to the legalities of it, any improvements on a property, at the end of the day, that improvement will belong to the property owner. But it is partly just out of courtesy as another agency of the government," Durano said. "We just need a new arrangement with them on how we will manage it, since the Provincial Government will now spend to rehabilitate it."
Multi-Year Funding Strategy
The Provincial Legal Office has been in communication with the DOJ since last year regarding the management arrangement. Durano emphasized that the rehabilitation cost makes it impossible to complete within a single year. "It's a multi-year funding. Clearly, it cannot be finished this year. We will start this year, then next year, we will allocate another budget," he stated.
Benefits of the Rehabilitation
Once rehabilitated, the Marcelo Fernan Palace of Justice will serve as the future site of the Court of Appeals, which Durano said would improve service efficiency for Cebuanos. The transfer will also free up space inside the Capitol, where several offices continue to operate without permanent work areas. Among the offices expected to relocate are the Barangay Affairs Office, the Provincial Sports Commission, the Investment Promotions Office, and the Provincial Tourism Office.
The Capitol also plans to convert the current Provincial Tourism Office into a Rural Health Unit and clinic for employees and the public once the transfer is completed. Durano said the rehabilitation project is expected to address long-standing space limitations while restoring one of the province's major government structures damaged by the 2013 earthquake.
