P400-M loan will help city's economy-A A +A
Friday, June 29, 2012
THE proposed P400-million loan of the administration of Mayor Alfred Romualdez would help pump prime the city’s economy, said Vicente Dy, budget officer of Tacloban City.
Dy also assured the public that the P400-million loan would not affect the city’s other services as Tacloban has been certified to have a borrowing capacity for it to pay its debts.
“This proposed loan is for the good of Tacloban. The list of projects to be implemented out of this loan is all developmental and important to the city,” Dy said.
The City Council approved an ordinance last Wednesday authorizing the city mayor to enter into a financial loan to the Development Bank of the Philippines worth P40-million.
The P400-million planned loan will be used to finance several projects of the City Government, which include construction of a sanitary landfill that would cost P75 million; improvement of slaughterhouse (P80 million); rehabilitation of some of the city’s drainage system (P60 million); and construction of several barangay gymnasiums (P15 million).
Other projects that will be financed under the proposed loan includes the improvement of the city police and fire stations at P10 million; procurement of several heavy equipment (P40 million); installation of closed circuit television (CCTV) units (P20 million), among others.
However, this plan was criticized by minority members of the City Council particularly Councilor Jerry Yaokasin, saying except for the improvement of the city’s old slaughterhouse, the list of projects have no direct economic values as earlier defended by Councilor Cristina Gonzales Romualdez.
Dy said the Bureau of Local Government Finance (BLGF) has issued a certification that Tacloban City Government has a “borrowing capacity.”
“We cannot borrow without the certification from the BLGF stating that we have the capacity to pay. The bank will also scrutinize our financial standing,” he said.
According to Dy, the City could borrow even more than P400 million as certified by the BLGF.
He also said if the plan would push through, the City Government would be paying this latest debt in 10 to 15 years at the most, with a three percent interest per year.
The City Government would pay the debt from its internal revenue allotment share and from its local sources. (Leyte Samar Daily Express)