‘3-BILLION QUESTION’: City Hall Denies Borrowing PHP3.3 Billion for Markets

By Rjay Zuriaga Castor

The Iloilo City government has refuted claims that it took out a PHP3.3 billion loan for public market rehabilitation, clarifying that the actual loan amount is significantly lower.

In a statement on Feb. 12, 2025, Mayor Jerry Treñas said the city only secured a PHP1.75 billion loan for various development projects, including public market rehabilitation, a six-story parking building, and a city hospital.

Treñas explained that the loan exclusive to market rehabilitation from the Development Bank of the Philippines (DBP) amounts to PHP940 million.

The DBP-funded market projects include:

• PHP395 million – Jaro Big Public Market
• PHP150 million – Arevalo Public Market
• PHP395 million – La Paz Public Market

In August 2024, the city secured an additional PHP300 million loan from DBP to complete ongoing market renovations under a phased construction scheme.

“We remain committed to transparency and responsible financial management to ensure these projects benefit the people of Iloilo City without compromising the city’s fiscal stability,” Treñas said.

The city’s clarification follows former Mayor Jed Patrick Mabilog’s claim that the Jaro Market rehabilitation was financed through a PHP3.3 billion loan.

Mabilog made the allegation while discussing the proposed renegotiation of the 2012 joint venture agreement (JVA) for the Iloilo-Guimaras Ferry Terminal Complex Project, which was signed under his administration.

A statement of indebtedness obtained by Daily Guardian confirmed that the PHP1.75 billion loan pertains to the city’s 2022 DBP loan.

Outstanding Loans

The city’s total outstanding loan from DBP now stands at PHP2.723 billion, including:

• 2012 – PHP293 million for a sanitary landfill project
• 2022 – PHP1.75 billion for public market rehabilitation, the city hospital, and a multi-level parking building
• 2023 – PHP200 million for a relocation site and PHP180 million for a new slaughterhouse
• 2024 – PHP300 million for ongoing market renovations

The city also has other loans from the Land Bank of the Philippines (LBP) and the National Housing Authority (NHA):

• LBP Loans:
  • PHP711 million (2008) – City Hall construction
  • PHP354 million (2016) – School buildings
• NHA Loan:
  • PHP10.7 million (2012) – Infrastructure projects at a resettlement site

Based on the statement of indebtedness, Iloilo City has incurred a total of PHP3.7987 billion in loans since 2008.