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Bacolod SP authorizes P4.4B DBP loan

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An ordinance authorizing the proposed borrowing of the City of Bacolod from the Development Bank of the Philippines the amount of P4.4 billion, or winning bid price, whichever is lower, to finance various priority projects of the city, was passed by the Bacolod Sangguniang Panlungsod on second, third and final reading Wednesday.

The SP had earlier approved a resolution granting Mayor Alfredo Abelardo Benitez authority to sign documents for the Development Bank of the Philippines loan term facility amounting to P4.4 billion.

Meanwhile, the ordinance authored by Councilor Jude Thaddeus Sayson, said the term loan facility with the DBP amounting to P4.4 billion will finance the following priority projects of the city:

1. Acquisition of lots to be utilized for various development project of the city (up to P1.5 billion)

2. Construction of a legislative building (up to P515 million)

3. Construction/improvement of mini hospitals for five barangays (up to P135 million)

4. Rehabilitation/improvement of City Hall (up to P223 million)

5. Improvement/rehabilitation of public markets (up to P525 million)

6. Construction/improvement of various roads (up to P270 million)

7. Construction/improvement of various drainages (up to 300 million)

8. Asphalt overlay of various roads (up to P50 million)

9. Construction of Bacolod warehouse (up to P67.900 million)

10.  Construction of City Engineering Motorpool Area (up to P30.800 million)

11. Improvement of Tree Park at Brgy. Alangilan (up to P47 million)

12. Construction of pedestrian mall (up to P50 million)

13. Construction/improvement of City Health Complex (up to P220 million)

14. Recovery and Recycling Complex and Eco Park (up to P103 million)

15. Furniture and equipment (up to P279.300 million)

16. Construction/installation of solar power generating system of various barangays and the BCGC (up to P100 million), and

17. Construction of traffic signalization (up to P25 million)

The ordinance said the interest rate of the P4.4 billion loan is fixed for two years at 3.55 percent per annum. Thereafter, it will be reviewed annually. The collateral/ guarantee is the existing assignment of applicable portion of the city’s Internal Revenue Allotment (IRA), local revenues, and income with hold-out deposit provision equal to highest 3-monthly amortizations, in favor of DBP for the duration of the loan, it added.*


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June 2023

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