BACOLOD City Mayor Alfredo Abelardo Benitez has clarified that the loan line granted to Bacolod City was only P4.1 billion.
Based on records, the City has availed itself of only P2.05 billion from the Development Bank of the Philippines (DBP) for various projects at this point in time.
Benitez, who is running for congressman, issued a clarification on Friday, March 28, 2025, following a statement by Vice Mayor El Cid Familiaran, who is running for mayor, that the P6.5 billion loan payment would drain the City’s resources for social services.
“Let’s set the record straight so that the constant lying of the other party will stop,” Benitez said.
He clarified that the P2.1 billion Super City Project is not a loan but a public-private partnership (PPP) project, payable based on accomplishments over the next 10 years.
He added that the P4.1 billion loan line was granted based on the City’s capacity to pay.
In fact, over the past three years, Bacolod City’s budget has increased from P3.2 billion to P4.4 billion — an increase of P1.2 billion, the mayor explained.
“Our financial standing is in very good shape and healthy, as we recently received a Financial Excellence award from the Bureau of Local Government Finance,” Benitez said.
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He also noted that, according to Section 324(b) of the Local Government Code of 1991, a city’s loan payments should not exceed 20 percent of its regular income.
However, he added that based on the City’s projected amortization payment, they will pay only eight percent of the 2025 budget — P352 million — including payments for the P1.8 billion loan incurred by the Leonardia administration.
Benitez emphasized that basic social services will not be affected, as the City’s financial obligation each year remains lower than projected revenues.
“If you look at our budget, we even allocated P50 million for the Bacolod City Comprehensive Health Program and P50 million for social pensions last year. This year, we increased these allocations to P130 million and P100 million, respectively,” Benitez said.
He explained that, aside from being intended for housing and future government and development sites, these projects are also an investment.
“The lands we purchased are expected to triple in value over the next 10 years, and the benefits of these projects will bring numerous advantages to our constituents,” he added.
The mayor assured that this loan will not affect the City’s social services. / MAP