Friday, March 31, 2006
Mayor junks pork barrel monetization, opts for loan
Mayor Rodrigo R. Duterte is no longer interested to claim the city's withheld internal revenue allotment (IRA) under the monetization program of the national government and instead wants to take out a loan to fund his three priority projects, City Administrator Wendel E. Avisado said Thursday.
Avisado said the City Government is looking into borrowing between P460-500 million from the Land Bank of the Philippines to fund its three projects: the transformation of the PTA ground to ecology park that will cost the city around P70 million, sanitary landfill estimated to cost P230 million, and sports complex that will cost around P200 million.
If the city decides to avail of the monetization program for its withheld IRA, Avisado said it cannot get the entire amount of P207 million.
"You lose the opportunity using that on its face value because if you monetize, that will be discounted for at least 30 percent or more, immediately you will lose P62 million, from P207 to P140-145 million. Kung mangutang ka you will get the entire 207 million, intact, as your counterpart in the amount to be loaned," he said.
Avisado said the P207 million IRA will be used as the collateral of city.
"So P207 million of that you have already raised, through the P207 unremitted IRA nato, magkano lang yung nahiram natin, P293 million lang if the city will borrow P500 million," he said.
Should the city borrow P500 million, Avisado said the P293 million is payable in seven to 10 years.
As of the moment, the transaction between the bank and the city is still being processed, Avisado said.
He added that the city may get the amount within the week. (BRQ)
For Bisaya stories from Davao. Click here. (March 31, 2006 issue)
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