City Council OKs P300-million loan for market renovations

BY GEROME DALIPE IV

ILOILO City – The City Council has approved the request of Mayor Jerry Treñas to secure an additional P300-million loan from the Development Bank of the Philippines (DBP) to complete the redevelopment of three major public markets: Jaro Big Public Market, La Paz Public Market, and Arevalo Market.

During their special session on Monday, the council passed a resolution approving the committee report of Councilor Rex Marcus Sarabia, the council’s appropriations committee chairperson.

“After careful study of the factual and legal antecedents of the endorsement, the committee finds that the request is just and proper; hence, it recommends that the same be given due course,” read Sarabia’s report.

The above loan, with a four percent fixed interest rate, is payable for 15 years. The mayor had secured P1.75 billion from DBP for the renovation of five public markets and the construction of a parking building.

The P300 million loan will be allotted for Jaro Big Market worth P100 million; La Paz Public Market (P80 million), and P120 million for the Arevalo Public Market.

In the report, the Committee on Appropriations noted the funds will be used for finishing work at the markets such as painting walls, wiring, plumbing, and installing windows and doors that are necessary before the full operations of the markets.

The city government had also secured additional loans of P180 million for the construction of the Iloilo Slaughterhouse and P200 million for land procurement for the city’s housing program.

Despite the above loans, the City Budget Office clarified the city government’s debt servicing remains low at 6.75 percent, which is below the 20 percent threshold of the debt service ceiling under the Local Government Code.

Councilor Sabarbia, in his committee report, said the loan term offered by DBP is advantageous for the city in the wake of current economic situations.

“By securing this loan with an interest rate below the inflation rate, the city can mitigate the financial burden on its budget and ensure that debt servicing costs do not outpace revenue growth,” read Sarabia’s report.

In his press briefing on Monday, Mayor Treñas said he will include in his 2024 State of the City Address (SOCA) on August 30 the above infrastructure projects and other significant achievements and future directions.

The mayor said his address would clearly outline the progress that his administration has made and where the city is heading.

“We have done a lot and I am very proud of the employees, department heads, and the Ilonggos who have done a lot for Iloilo in the past year. But we still have so much to do,” said Treñas.

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 P3 billion; next year, it might be around P3.3 billion,” the mayor said./PN

LEAVE A REPLY

Please enter your comment!
Please enter your name here