Tacloban eyes immediate release of PHP391-M bank loan

TACLOBAN CITY, Feb. 10 (PNA) – The city government here is optimistic that the Land Bank of the Philippines will release the PHP391 million loan recently approved by the city council before midyear.

Mayor Alfred S. Romualdez said the amount is only small compared to the city government’s borrowing capacity of PHP500 million.

"This is a small loan with a huge impact. I believe this will be released in the next few weeks or within the next few months before the end of my term," said Romualdez, who will conclude his nine-year term as mayor on June 30.

The amount will finance the rehabilitation of slaughterhouse, construction of drainage system and sanitary landfill.

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

The city government will only pay a 4.5 percent interest per year.

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

"We really need this loan for development projects especially the slaughterhouse, which we could not afford to build right now," Romualdez said.

Last year, the city government was freed from PHP367.3 million debts incurred during the administration of then Mayor Alfredo Romualdez, the mayor’s father who ruled the city for nine years until 2007.

The loan was used to fund the construction of a bus terminal, public market and the City Convention Center. The bus terminal decongested the city’s business district while the convention has been the venue of various events and serves as evacuation center during typhoons. (PNA)

JBP/SARWELL Q. MENIANO