TWENTY-FOUR years after the start of the Cebu City Government’s project that became the South Road Properties (SRP), the City is still buried in debt amounting to over a billion pesos.
Mayor Edgardo Labella wants to pay the P1.7 billion loan balance that the City owes the Japan International Cooperation Agency (Jica).
The City officials, led by Labella, who recently met with the Land Bank of the Philippines (LBP) top bosses, discussed the options to settle the City’s lone loan balance.
The City leadership claims that other projects could be implemented if the City has no more debt.
In 1995, the City availed itself of a P2.8 billion loan from Jica—then called the Japan Bank for International Cooperation—for the South Reclamation Project, the SRP’s precursor. The loan was channeled through the LBP.
City Treasurer Jerone Castillo said they made the queries during a courtesy call with the LBP officials.
“We took the liberty to ask some questions regarding the loan balance. The mayor made his position that he will pay the loan,” he said.
Within this week, the LBP will give its suggestions to the City on how to settle its remaining debt to Jica, Castillo said.
Castillo was told that some of the requirements to service the SRP debt include getting the approval from the International Monetary Fund and other clearances from government agencies, such as the Department of Finance.
When Vice Mayor Michael Rama was still the mayor between 2010 and 2016, the City was able to get a document that allows the payment for the loan balance, which was still P2 billion at the time.
However, Rama’s administration failed to pay the debt after the City Council—dominated by the opposition lawmakers affiliated with Bando Osmeña Pundok Kauswagan—refused to give him authority to do so.
Castillo said his office would check if the document obtained by Rama could still be used in paying the loan balance. (from PAC of Superbalita Cebu/KAL)