THE City Government of Bacolod and the Development Bank of the Philippines (DBP) have already signed the agreement for the P4.441 billion loan to fund the city’s priority projects.
The signing of the agreement was led by Mayor Alfredo Abelardo Benitez, DBP president and chief executive officer Michael De Jesus along with Congressman Greg Gasataya, Vice Mayor El Cid Familiaran, and the DBP’s other officials at the Bacolod City Government Center on Thursday afternoon, April 27.
On Wednesday afternoon, April 26, the City Council authorized the mayor to sign the P4.441 billion loan agreement with the DBP for the implementation of the city’s priority projects.
The Department of Finance (DOF) earlier approved the P5.5 billion proposed loan for Bacolod, but the mayor explained that because of the city’s reduction in its national tax allotment (NTA) share in 2023, the loan was lowered to P4.441 billion.
Benitez said the P4.441 billion loan will be used for the construction of the legislative building, markets, mini-hospitals, land banking, and solid waste management recycling facilities.
“Because our loan capacity decreased, it will also affect the city other projects, like the underground cabling and the project proposals for public-private partnership (PPP),” he said.
For his part, De Jesus also expressed his gratitude to the city officials for giving them the opportunity to serve the city.
“We value you as a client, we value the rrelationship,and we hope to continue to provide you the level of service that you expect from us and you deserve. I hope that this will be the start and that there will be further deals in the future,” De Jesus said.
Bernardo Castillon Jr., senior manager of DBP, said the DBP offered an interest rate of 3.55 percent per annum to the city government, and it will be paid up to 15 years with three years grace period in the principal.
“So far, this is the lowest interest rate because in other local government units (LGUs) in the country, we offered 5 percent per annum,” he said.
Benitez said that it’s the best rate offered for the city’s loan compared to other LGUs.
He said by next week, they will submit to the City Council all the proposed projects included in the loan agreement for its implementation.*