BACOLOD City Mayor Alfredo Abelardo Benitez said Monday, April 3, that the Development Bank of the Philippines (DBP) offered the best rates for the city’s P5.5 billion proposed loan.
This, after the City Council earlier granted Benitez the authority to conform to the proposed term loan facilities approved by the DBP, drawable from the omnibus line in favor of Bacolod, in the amount of P5.5 billion.
Benitez also signed the documents Monday, and then it will be followed by the signing of the loan agreement with the DBP.
After the signing of the loan agreement, Benitez said they can start the processing of the specific projects in the city.
"They offered advantageous rates to the city government," he said.
Councilor Al Victor Espino, chairperson of the City Council committee on laws, earlier said the interest of DBP of 3.55 percent will be used by the Bureau of Local Government Finance (BLGF) to compute the city’s debt ceiling.
He said the Land Bank of the Philippines (LBP) offered an interest rate of 4.25 percent per annum fixed for three years, while the DBP offered 3.75 percent fixed for two years.
He added that DBP presented a counteroffer with a 3.55 percent interest rate, while the lowest LBP could offer was 3.70 percent.
Based on the approved investment plan (AIP) of Bacolod, aside from the acquisition of lots and other socio-economic development projects, the loan will also be utilized for infrastructure, port development, waterworks programs, and post-Covid-19 projects.
It will also be intended for the construction and repair of school buildings, computerization and livelihood projects, the purchase of equipment, road concreting, and other projects listed in the city's annual development plan.
It also includes the construction of the legislative building at the Bacolod Government Center and the mini-hospitals.*