NEWS: Tagum City govt to borrow anew P400 M from DBP to finish new City Hall

dec 16

The Tagum City government will be securing a new P400 million loan from the Development Bank of the Philippines to fund the completion its new City Hall building, which needs another P250 million, and for the other priority projects of Mayor Rey Uy.

On Monday the City Council approved Resolution No. 573 authorizing Uy to negotiate with the DBP for a P400-million loan payable for 10 years.

The half of the amount or P250 million would be used for the acquisition of equipment and land and for the construction of city’s food terminal complex, said Vice Mayor Allan Rellon.

The city government has already spent P200 million, still secured on DBP borrowing, for the new City Hall building, which is located at the eleven-hectare lot in barangay Apokon donated by the Ayala family.

It is being built in-house using the City Engineer’s Office and city’s own manpower and equipment including its batching plant under the guidance of a project management office and project consultant.

While the fresh loan to be sought is on top of previous loans, the City Budget Office clarified that the P400-million loan amortization is still way below the city’s loan amortization cap of P42 million as computed by the Department of Finance.

City Engineer Gilbert Mambulao has reported that the building with the initial P200 million is now “60 percent complete” standing in skeleton with columns, beams, slabs and roofing parts.

He said that they have the original target of completing the building and “fully furnished” by September 10, 2009 before the 2010 elections.

The DBP has offered to put the interest rate of the planned P400 borrowing on floating interest rate and not a fixed one noting on the prevailing economic uncertainty due to international financial crunch and the possible vulnerability of local banks in case of economic downtrend.

On the other hand, the P100-million food terminal complex, that is planned to have a food packaging center and which is one of the Regional Development Council’s identified regional projects, is planned to be constructed in progressive type of development, said Sonny Manigo of the City Planning and Development Office.

He said that from what the city government could build private investors could infuse investments if they choose to locate within the food terminal complex. (Cha Monforte/Rural Urban News)

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