Bacolod projects included in P5.5-B loan will undergo SP scrutiny – Benitez

By Dolly Yasa

BACOLOD City – Bacolod City Mayor Alfredo Benitez said on Monday that all city government projects that will be funded by a proposed P5.5-billion loan will undergo the scrutiny of the Sangguniang Panlungsod.

Benitez also confirmed that the SP has authorized him to sign the conforme for the loan with the Development Bank of the Philippines ( DBP).

Benitez added that he opted for DBP because “they gave the best rate, they are the most advantageous to the local government in terms of rate and conditions and Councilor Al Victor Espino and Councilor Thaddy Sayson said the city government will be saving P70 million in yearly interest at the end of the day, the rates are the best.”

He added that the list of 20 projects that will be undertaken using the loan, which included the rehabilitation of the old city hall in the downtown area, is a temporary list.

“My arrangement with the city council is that nga ang tanan nga projects ginkuhaan sang loan ipaagi ko sa ila for their scrutiny, I will abide by their decision.”

Earlier, the SP granted Benitez the authority to conform with the proposed term loan facilities approved by the Development Bank of the Philippines, drawable from the omnibus line in favor of Bacolod City, in the amount of P5.5 billion.

However, Councilors Renecito Novero and Em Ang abstained pending submission of the loan agreement.

Both pointed out, though, that they are not objecting to the loan facilities and projects identified.

Novero said they want to be adequately informed of the provisions that will help spell out the final document of the purpose of the P5.5 billion loan.

Ang said she wants to see the loan agreement before giving her vote to authorize the mayor to sign since the only document attached was a letter from DBP with no specific terms and conditions.

She added that the documents have to be reviewed by the City Legal Office and the SP first.

Councilor Al Victor Espino, chair of the SP Committee on Laws, said the conforme given to the mayor was to help initiate the process for Bacolod City to secure the Bureau of Local Government Finance (BLGF) debt ceiling for the city.

The interest of DBP of 3.55 percent will be used by the BLGF to compute the city’s debt ceiling.

Espino also said the proposed loan will still have to pass through the SP via a memorandum of agreement for their scrutiny.

Espino also said that the Land Bank of the Philippines (LBP) offered an interest rate of 4.25 percent per annum fixed for three years, while DBP offered 3.75 percent fixed for two years.

The DBP counter offered with a 3.55 percent interest rate, while the lowest LBP could offer was 3.70 percent, he added.