Mayor seeks P1.2 billion for infrastructure projects
Cebu City Mayor Michael Rama is seeking an additional P1.2 billion for this year’s budget to implement “long delayed” infrastructure projects.
His proposal for the passage of Supplemental Budget No. 2 will be deliberated by the City Council next week.
The city treasurer is also seeking authority from the council for the mayor to open a Letter of Credit with one of the city’s depository banks.
City Administrator Jose Marie Poblete said the LC may be needed to have standby funds available for SB 2.
“We have surplus funds but they’re not enough (to fund SB2. That is why we need another fund source,” he told Cebu Daily News.
Poblete said the city does not need not take out a new loan and that the LC was just a standby measure.
“Opening a Letter of Credit does not necessarily mean that we can avail of a loan outright. We can also choose not to avail if the city has an unexpected income,” he said.
So far, the City Treasurers Office (CTO) has raised about P3.3 billion in midyear revenues. The annual budget of the city requires P4.5 billion..
Poblete said he expects the CTO to meet the full requirement by Dec. 31 and have some surplus funds.
But without having to wait for the yearend, a fund source has to be identified for projects identified in SB2.
Poblete said that a big chunk of SB 2 or P900 million would be spent on infrastructure projects while P300 would go to operating expenses, such as power and fuel expenses.
Drainage improvement projects will need P200 million and P100 million each for the construction of Carbon Market Unit II and road concreting.
The remaining P500 million will be for barangay infrastructure projects.
Poblete said that most of the projects proposed under SB2 have long been identified but lacked funds for implementation.
Budget Officer Nelfa Briones was expected to furnish the City Council secretariat a copy of SB 2 yesterday afternoon in time for the agenda of the council’s August 24 session.
Poblete said that attached to the proposed SB2 is a letter from City Treasurer Tessie Camarillo seeking council authority for the mayor to open a letter of credit with one of its depository banks.
“The selection of a bank will involve the city council. But initially Tessie Camarillo have already asked some banks to submit their proposals,” he said.
The city has cash deposits with the Land Bank of the Philippines and the Philippine Veterans Bank, Banco de Oro and the Philippine Development Bank of the Philippines among others.
Poblete said that the city use as collateral for its letter of credit some of its properties like block 27 at the North Reclamation Area which is now used as temporary shelter for families who were demolished from along the three meter easement of the Mahiga Creek in barangay Mabolo.
