Tacloban councilors approve P400-M loan
TACLOBAN CITY—The city council approved a request by Mayor Alfred Romualdez Jr. to borrow P400 million from the Development Bank of the Philippines (DBP) for projects that include a sanitary landfill.
The mayor’s critics, however, questioned the timing of the loan saying it would come too close to the elections next year.
The council on Wednesday passed an ordinance authorizing Mayor Romualdez to enter into a loan agreement with the DBP.
The city government planned to use P75 million to build a sanitary landfill, P80 million for repairs on the city slaughterhouse, P60 million to repair the city drainage system and P15 million to build village gyms.
Absent critics
Only opposition Councilor Jerry Yaokasin opposed the ordinance. Other known Romualdez critics— Councilors Niel Glova, Robert Andrade and Jerry Uy—were absent when the council passed it.
“There are fears that these projects could not be implemented considering that it’s less than a year before the 2013 elections,” Yakaosin said.
He said among the projects that were listed for funding, only repairs on the city slaughterhouse could generate income.
But Yakaosin said P80 million for the improvement of the abattoir was too much. “It (abattoir) could end up as the most expensive slaughterhouse in the entire country,” he added.
Councilor Cristina Gonzales Romualdez, who chairs the committee on finance, said the funds would be used properly.
“How can we attract more investors if we have problems on drainage? If we have more investors, they will pay more taxes,” she said.
Capable city
City budget officer Vicente Dy also said Tacloban City had a borrowing capacity of more than P400 million as certified by the Bureau of Local Government Finance.
“We cannot borrow an amount beyond our capacity to pay and the bank scrutinizes our financial standing,” Dy said.
He said if the proposed loan pushed through, the city government would be able to pay it in 10 to 15 years at an annual interest of 3 percent.
Dy said the city’s loan payment would come from its internal revenue allotment and other sources.
Tacloban City has a budget this year of P827 million.
