ILOILO City – Mayor Jerry Treñas has addressed misinformation about the city government’s financial undertakings, clarifying that Iloilo City has not taken a P3.3-billion loan for public market improvement, as previously reported.
The mayor confirmed that the city has initially secured a P1.75-billion loan from the Development Bank of the Philippines (DBP) for various projects. These include the rehabilitation of public markets, construction of a six-story parking building, and establishment of a city hospital.
The P940 million allocated for market rehabilitation include P395 million for the Jaro Big Public Market; Arevalo Public Market – P150 million; and La Paz Public Market – P395 million.
Treñas emphasized that the city government remains committed to transparency and fiscal responsibility, ensuring the projects benefit Iloilo City residents while maintaining financial stability.
In September 2024, the City Council approved a P300-million loan from DBP to complete redevelopment efforts for the Jaro Big Public Market, La Paz Public Market, and Arevalo Public Market.
The loan agreement is fixed at four percent per annum for three years on principal repayments.
The loan is payable in 15 years, with quarterly installments after the grace period.
A 24 percent annual interest rate applies only to overdue amounts in case of delayed payments.
City Hall lawyer Fydah Sabando has confirmed during a committee hearing that the loan proceeds will be utilized within a one-year timeframe.
The funds will cover finishing work, including painting walls, electrical wiring, plumbing, and installation of windows and doors.
The City Budget Office clarified that Iloilo City’s debt servicing remains at 6.75 percent, well below the 20 percent threshold set by the Local Government Code. This reflects the city’s sound fiscal management while pursuing its development programs.
The Department of Budget and Management’s Joint Memorandum Circular No. 2 (April 13, 2011) mandates the allocation of at least 20 percent of the Internal Revenue Allotment (IRA) for development projects, as outlined in Section 287 of the Local Government Code. Iloilo City ensures adherence to this directive./PN
