CEBU City Mayor Tomas Osmeña assured that the City Government will pay off the P3-billion loan it plans to take out once the sale of a three-hectare lot at the South Road Properties (SRP) is completed.
While the property has yet to be sold, Osmeña said the City will take out a loan from the Land Bank of the Philippines to fund the infrastructure projects the city needs.
Using the proceeds of the loan, City Hall will implement drainage system repairs, road-asphalting and concreting projects before the year ends.
“We are going to negotiate. It’s only a transition period because we’re selling the (three-hectare SRP) lot. The moment we sell the property, we will pay off the loan. In the meantime, we can already start fixing our drainage and our roads,” Osmeña said.
Unlike the previous administration that sold two lots at the SRP with a combined area of 45.2 hectares, Osmeña explained that at present, the City only needs to sell the three-hectare reclaimed property to fund basic services.
Osmeña reiterated that the City will not use the proceeds of the sale of the 45.2-hectare SRP lot in 2015 since the transaction is illegal. He earlier said that he plans to rescind the contract of the sale of lots. (RVC)