City Hall defends planned P300-M DBP loan amid P2.5-B debt

By Rjay Zuriaga Castor

Iloilo City Mayor Raisa Treñas-Chu is defending the city government’s plan to secure an additional PHP 300 million loan from the Development Bank of the Philippines (DBP) to expand the Iloilo City Community College, saying the project is key to sustaining free tertiary education for indigent but deserving Ilonggo students.

Treñas-Chu said Friday, Feb. 6, that expanding ICCC on city-owned land in Fort San Pedro area, City Proper, aligns with the administration’s education priorities even as the city grapples with more than PHP 2.5 billion in outstanding debt.

The ICCC expansion was earlier identified as a key project in the mayor’s First 100 Days report in October last year.

The City Council has authorized Treñas-Chu to sign the loan agreement with DBP.

Treñas-Chu said the project would allow ICCC to offer in-demand and future-ready programs such as information technology and hotel and restaurant management, alongside other industry-aligned courses aimed at improving graduates’ employability.

ICCC currently serves more than 1,300 students enrolled in four academic programs, including board and non-board courses, at its original campus in Molo.

Treñas-Chu said the planned borrowing should be viewed not only as financing but also as a long-term investment in the city’s youth.

“This expansion is necessary to strengthen institutional capacity and, more importantly, to protect the school’s Commission on Higher Education (CHED) accreditation,” she said.

Treñas-Chu said ICCC is one of only three community colleges in Western Visayas receiving CHED support, and that the subsidy is conditional on carrying out the expansion.

She warned that failure to comply could jeopardize CHED grants and free tuition subsidies that benefit most of the school’s students.

The proposed expansion includes site development and the construction of two three-story buildings with 12 classrooms each, designed for future vertical expansion.

Plans also include a four-story building with classrooms, administrative offices, a library, and computer laboratories.

The project scope further covers internal road networks and parking areas, drainage systems, perimeter fencing, and a gymnasium with seating for up to 1,000.

ICCC was established through a city ordinance passed by the Sangguniang Panlungsod in 2011 under the administration of former Mayor Jed Patrick Mabilog.

In 2012, Ilonggo businessman Edgar “Injap” Sia donated the four-story Injap Foundation Building worth PHP 25 million at no cost to the city government.

“This is not just an expansion of school facilities but an expansion of opportunities for Ilonggo youth,” Treñas-Chu said.

Councilor Rex Marcus Sarabia, chair of the Committee on Appropriations, said the city had a remaining borrowing capacity of about PHP 2.4 billion as of 2025.

Iloilo City’s outstanding debt stands at PHP 2,523,311,980.39.

City officials said most of the city’s obligations are tied to DBP, with about PHP 2.4 billion remaining from loans contracted in 2012, 2022, and 2023.

Those loans funded projects including the Calajunan sanitary landfill, public market rehabilitation, the Iloilo City Hospital, a multilevel parking facility, land acquisition for socialized housing, and construction of a modern slaughterhouse in Barangay Tacas, Jaro.