Iloilo City carries PHP2.5-B debt

By Rjay Zuriaga Castor

The Iloilo City government remains burdened with over PHP 2.5 billion in outstanding debt until 2026, based on figures from its proposed budget, reflecting more than a decade of substantial borrowing for public infrastructure.

Documents show that the city government carries a total principal balance of PHP 2,523,311,980.39 from loans sourced from the Land Bank of the Philippines, the Development Bank of the Philippines (DBP), and the National Housing Authority (NHA).

For fiscal year 2026, the city is set to pay PHP 227,185,817.27 in combined amortization of principal and interest.

Records show that the city still owes PHP 133,355,784.01 to Land Bank from a 2016 loan for the construction of school buildings. A separate PHP 711 million loan from Land Bank in 2008 for the construction of Iloilo City Hall has already been fully paid.

For DBP, the city has a combined PHP 2.4 billion in remaining obligations from loans contracted in 2012, 2022, and 2023.

The 2012 loan was used for the full implementation of a sanitary landfill project at the Calajunan dumpsite in Barangay Calajunan, Mandurriao district.

In the same year, the city also borrowed PHP 10.7 million from the NHA for infrastructure development in resettlement areas. As of 2026, just over PHP 1 million remains outstanding, with PHP 711,300 due next year.

In 2022, the city secured a PHP 2.05-billion loan from DBP to fund the rehabilitation of public markets, the construction of the Iloilo City Hospital, and the development of a multi-level parking building.

In 2023, the city took out two additional DBP loans: PHP 200 million for land acquisition to be used as relocation sites under its socialized housing program, and PHP 180 million for the construction of a modern, fully mechanized slaughterhouse in Barangay Tacas, Jaro.

The new slaughterhouse aims to increase daily capacity to 1,000 swine heads, up from the current 500 to 600.

Since 2008, the city has incurred a total of PHP 3,798,155,191 in loans for various infrastructure projects.