Iloilo City borrows additional ₱300M for market renovations

By Mariela Angella Oladive

Iloilo City Mayor Jerry P. Treñas announced that the city secured an additional ₱300 million loan from the Development Bank of the Philippines (DBP) to complete ongoing renovations of three major public markets: Jaro Big Public Market, La Paz Public Market, and Arevalo Market.

This latest borrowing is part of a 15-year term loan approved by the Iloilo City Council. The Treñas administration had previously secured ₱1.75 billion for the renovation of five public markets and the construction of a parking building.

The ₱300 million loan, with a 4% interest rate, will be allocated as follows:

• ₱100 million for the Jaro Big Market,
• ₱80 million for the La Paz Public Market, and
• ₱120 million for the Arevalo Public Market.

According to a report from the Committee on Appropriations, presented by the mayor’s son, Councilor Miguel Treñas, these funds will be used for finishing work at the markets, including painting walls, wiring, plumbing, and the installation of windows and doors, all necessary before the markets can be fully operational.

The city previously borrowed ₱1.75 billion from DBP for the renovation of five public markets and the construction of a parking building.

Additionally, the city has taken out other loans, including ₱180 million for the construction of the Iloilo Slaughterhouse and ₱200 million for land procurement for the city’s housing program.

Despite these loans, the City Budget Office reported that Iloilo City’s debt servicing remains low at 6.75 percent, well below the 20 percent ceiling mandated by law.

Councilor Treñas noted that the loan is advantageous for the city, given that the interest rate is lower than the national inflation rate of 4.4 percent.

Councilor Treñas revealed the additional loan as he highlighted the redevelopment of Iloilo’s public markets and plazas as key accomplishments of his administration this year.

“As for the plazas, we’re continuously working on them,” Councilor Treñas added.

Mayor Jerry Treñas is set to deliver the 2024 State of the City Address (SOCA) on August 30, where he will emphasize the city’s significant achievements and future directions.

In a press conference on Monday, August 19, Mayor Treñas stressed that his address would clearly outline the progress made and the city’s plans moving forward.

He also noted that next year’s budget would see a slight increase, primarily for salaries and other essentials.

“Next year’s budget won’t see a significant increase. This year, our budget is around ₱3 billion; next year, it might be around ₱3.3 billion,” the mayor said.

He explained that the budget increase would mainly cover salary adjustments and other essential needs.

“The increase will focus on salary increases and other necessities. Even though we increased the real property tax, we also had to lower it. Salaries consume a large portion of the budget, so we can’t allocate funds as freely as we might like. We’ll do our best under these circumstances,” he explained.