Tacloban city council okays PHP391-M bank loan

TACLOBAN CITY, Jan. 29 (PNA) –- The city council has approved the plan of the city government to secure a PHP391-million loan from the Land Bank of the Philippines. 

This is the first time that the city government under the administration of Mayor Alfred Romualdez would get a loan after their first attempt in 2012 was disapproved by city councilors.

“For the benefit of Tacloban and to address the old-aged problem of the city, we are supporting the plan of the city government to apply for a loan,” said Councilor Neil Glova, whose running for mayor against the mayor’s wife Cristina, a city councilor.

The amount will be used in the implementation of infrastructure projects like the rehabilitation of slaughterhouse, improve the drainage system and construct the sanitary landfill.

A total of PHP113 million will be allocated for slaughterhouse rehabilitation, PHP192 million for drainage system and PHP86 million for the construction of sanitary landfill.

Once the loan is approved, the city government will only pay the interest of 4.5 percent per year. 

The amount borrowed for slaughter house will be paid for 10 years while the loan for sanitary landfill and drainage will be paid for 15 years.

Next week, officials from the city engineer’s office are expected to present drainage master plan of the city that will be used in the implementation of the project.

“If I will to decide, I want that this loan to be approved in the next administration, but since the majority favors this, I support the plan. It’s better that they are now presenting solutions to the problem, but people should be vigilant when the project starts,” Glova said.

Some groups have expressed reservation over the loan proposal since the loan is being secured within the election period. The mayor’s term will expire on June 30, 2016.

“After super typhoon Yolanda, we need more help that could uplift the lives of everybody, especially on these three projects. Flooding is affecting everybody, especially now with the effect of climate change. We need to be prepared,” Councilor Romualdez explained during the council’s session on Wednesday.

The lady councilor added that aside from these three projects, the city is also experiencing a water shortage problem, especially in relocation sites, which is being taken care of now by the city government with the commitment of private investors.

Romualdez said that banks would allow the city government to acquire a loan if they do not see that the local has a stable fiscal economy.

Citing the present situation of the city as assessed by the bank, the local government has the capacity to loan up to more than PHP500 million.

Opposition Councilor Jerry Uy said that once these projects are done, this will be an income-generating asset for the city like the slaughter house. The abattoir will be classified as triple A.

The construction of a sanitary landfill is a good move by the city government while waiting for the private investors to construct a waste-to-energy plant in the city, according to Vice Mayor Jerry Yaokasin.

About three waste-to-energy companies have already signified their intention to construct said plants in the city.

“If I am to choose, I want the solution of these companies are proposing for the garbage of the city, but since they have not yet started, the best option now is for the city to construct a sanitary landfill,” Yaokasin added. (PNA)
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