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Saturday, February 04, 2006
City borrows P125M for schoolbuilding projects
By Albert B. Lacanlale and Reynaldo G. Navales
* But minority bloc opposes loan plan
* P25M of loan to be used in renovation of old public market
* Bank intended as City's sole depository bank for IRA, other deposits
CITY OF SAN FERNANDO -- The City Council here ratified Thursday the P125 million-loan agreement being entered into by the City Government with the Land Bank of the Philippines (LBP).
In their regular session Wednesday, majority of the councilors here approved the loan agreement, which the City would use for the construction of barangay elementary schools and public high schools and the renovation of the old public market here.
The approval was embodied in a resolution sponsored by City Councilor Alex F. Patio, chairman of the committee on appropriations.
City Mayor Oscar S. Rodriguez, who represented the City Government in contracting the loan, has identified education among his eight-point priority development programs of the City.
Based on assessments and studies conducted by the Office of the City Engineer, 21 four-classroom buildings, amounting to some P65.6 million, and five two-storey buildings with six classrooms each, with a total cost of P22,525,715.90, need to be constructed in various barangays.
Moreover, the engineering office also found the need to provide for a 12-classroom two-storey building for the Pampanga High School, the city's premiere public secondary school. The project would cost around P11.44 million.
With the proposal of a bond floatation scheme for the old public market renovation still in limbo, the City Government included some P25 million in the loan to transform the market in the Poblacion area into a competitive economic facility.
As a show of gratitude to the lending agency, which is the LBP, the City Council agreed to designate the institution as the City Government's sole depository bank for its internal revenue allotment (IRA) and other deposits.
Such designation shall not be revoked while the loan obligations remain outstanding.
Opposition
However, some members of the City Council here are opposing the plan of the local government to secure a P125 million loan from the LandBank.
Councilor Raul Macalino, a member of the minority bloc, said it is ironic for the City, which now boasts of a close to half billion-peso annual budget, to borrow funds from an institution to finance its infrastructure projects.
He also assailed some provisions in the prepared memorandum of agreement including the use of the City's Special Educational Fund (SEF) and the internal revenue allotment (IRA) as collaterals in the loan.
He also cited the 10 percent loan interest he described as additional burden to the Fernandinos.
The executive department, Macalino claimed, should instead maximize resources in order to fund the City's infrastructure projects.
Macalino also lashed on the manner in which the resolution was approved saying, "it was done hastily."
For his part, Councilor Bernie Castro, city council's minority floor leader, opined that the City Government's plan was brought about by the big number of personnel.
This year, the City spends some P153,130,428 for the compensation of its personnel. Last year, a total of P92,392,247 was used in services expenditures.
The City, he added, would be able to save enough funds for infrastructure developments and delivery of basic services if only its personnel are not too many.
The two officials however clarified that they are not opposed to the City Government's program. They claimed that it is their mandate to protect the interests of the people.
(February 3, 2006 issue)
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