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Thursday, July 07, 2005
Bank offers funding for 'solid waste'
CITY OF SAN FERNANDO -- Local government units (LGUs) who do not have the funds to support projects adhering to new environmental laws can now heave a sigh of relief.
This, as the Development Bank of the Philippines (DBP) is offering the Credit Line for Solid Waste Management (CLMSWM) for LGUs to adopt garbage disposal systems in compliant to Republic Act (RA) 9003 or the Ecological Solid Waste Management Act.
In a recent presentation before members of the Pampanga Mayors' League (PML), DBP vice president Cresencia R. Bundoc said the CLMSWM, a foreign funded program, seeks to provide financing and technical assistance to LGUs and private enterprises to carry out investments in solid waste management.
With the full implementation of RA 9003, LGUs are prohibited from using open dumpsites, while controlled dumpsites will only be allowed to be used up to January next year.
The LGUs who would fail to comply with the new environmental measure will face appropriate charges.
The program derives the funding from the Federal Republic of Germany, through the Kreditanstalt Fur Wiederaufbau (KFW), Bundoc said.
Through the program, she said, LGUs can secure loans for the conversion of open dumpsites into controlled dumpsites or into sanitary landfills; construction of sanitary landfills including an acquisition of equipment for waste disposal and treatment; waste collection and transport including collection vehicles and other equipment; adoption of facilities for waste treatment and recycling; and consultation services for project preparation and implementation.
The eligible projects can contract the loan for the acquisition of rolling stock like trucks, compactora, bulldozers, dip trucks, pick-up trucks or pay loaders.
However, purchase of land; cost of taxes and duties; and general administrative expenses cannot be covered by the loan.
Bundoc said that interest rate for the loan is fixed based on prevailing market rate at the time the loan is contracted.
Repayment term is up to 12 years, with a maximum of three years grace period and LGUs can loan up to a maximum of 90 percent of the total project cost.
Bundoc however said the DBP requires the assignment of a position of the LGU's Internal Revenue Allotment (IRA) in favor of the bank as collateral. (ABL)
(July 7, 2005 issue)
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