THE Metro Bacolod Chamber of Commerce and Industry (MBCCI) is urging the Bacolod City Water District (Baciwa) to grab the P3 billion in “all purpose” loan line being offered by the Development Bank of the Philippines (DBP).
Frank Carbon, chief executive officer of MBCCI said that they were informed by the DBP that the latter is offering the amount as omnibus loan line to the water district.
Carbon said that the loan can be used by Baciwa for the bulk water supply project, reducing non-revenue water, as take-out of its loan from Local Water Utilities Administration (LWUA), septage disposal project, and expansion purposes.
“The DBP, I think, has an inkling that the Office of the Government Corporate Counsel (OGCC) will issue anytime an opinion to rescind the existing bulk water supply contract due to serious delay of the project,” he said, adding that “until now, the Injection Point 2 has not yet delivered water.”
The business leader further said the government bank believes that Baciwa has the technical know-how.
“They have the problem, they know the solution but they just do not have the money,” Carbon said.
MBCCI has been urging the water district to acquire a bigger loan for the improvement of its distribution systems that will complement the bulk water supply project.
For the group, the DBP is now offering a solution or way out from the problems being experienced by Baciwa.
Citing the increasing water requirement of the city, Carbon said the water should grab the loan being offered by the bank.
He said that through which, the DBP will be working with Baciwa in helping the community to have ample water given the major investments pouring in Bacolod City.
“The bulk water project that we have waited for almost three years has been overtaken by big developments. To mention some, we already have Ayala, Megaworld, Cebu Landmasters, plus Dynamic is also building the Capitol Commercial Center,” Carbon said, stressing that “no water, no business.”
Another factor that the local business group considers in pushing Baciwa to grab the loan is the cheaper interest rate resulting in big savings, since this will be a government to government contract.
Though the interest rate with the DBP is not yet specified, Carbon said it will surely be lower than the eight percent incurred by the water district in its P250 million worth of loan from LWUA.
Carbon said the loan will enable Baciwa to have a better bulk water project than that with the Bacolod Bulk Water Inc.
Baciwa will construct its own bulk water project using the DBP fund, maybe with water districts of Murcia and Talisay which have plenty of water sources, Carbon said.
“DPB’s loan offer is a huge light for Baciwa thus, we should push for this,” he added.