THE Bacolod City Council approved the three agreements between the City Government and Development Bank of the Philippines (DBP) involving the P1.7-billion loan.
Councilor Caesar Distrito, chairperson of the City Council committee on finance, said on Tuesday, November 27, that they approved during the regular session Monday the request of Mayor Evelio Leonardia on the Loan Term Agreement, Borrowing Ordinance as required by Bangko Sentral ng Pilipinas, and the Continuing Deed of Assignment of Deposit with a Hold-out Agreement.
“These requirements is for the mayor to sign which involves the P1.7 billion loan to fund the city’s flagship projects,” he said.
Those who voted in favor of the agreements were Councilors Distrito, Cindy Rojas, Em Ang, Renecito Novero, Dindo Ramos, Bartolome Orola, Elmer Sy, Ana Marie Palermo, Sonya Verdeflor, Lady Gles Gonzales-Pallen, and Ayesha Joy Villaflor.
Councilor Wilson Gamboa Jr. voted against it, while Councilors Ricardo Tan and Claudio Puentevella were absent.
In May, the City Council authorized Leonardia to explore and negotiate with the National Government to provide loan for the six flagships projects of the city.
They authorized the mayor to negotiate with the Department of Finance (DOF)–Mediumterm Development Fund (MDF) Financial Assistance or any government banking or financial institution to fund the city’s projects.
Distrito said they also submitted an application with the DOF, but it was determined that they can only finance 80 percent and the remaining 20 percent will be coming from the local government units equity, and other requirements that until now they cannot approve the loan.
He said the DBP went first so the city availed it plus the bank is willing to match with the same interest, which is the prevailing interest.
Prior to the approval of the three agreements, Distrito held a public hearing at the City Council that was attended by various offices, business groups, non-government organizations, and barangay officials so they can consult the public and scrutinize the projects with all the technical working groups and the project-in-charge.
Distrito said no one objected the proposed loan because the City is already in the direction toward having these infrastructure projects.
“We are happy that no one showed a objection on the proposed loan,” he said.
Distrito said the approved agreements will be subjected for ratification of the contract next week, and then, they will pass an appropriation ordinance for the P1.7 billion loan so they can start the bidding process.