P5.5 billion Land Bank credit available for Baguio City projs

By Dexter A. See 

BAGUIO CITY – The Land Bank of the Philippines disclosed it made available some P5.5 billion stand-by credit facility to finance the city government’s big-ticket projects.

Appearing before the city council recently, LBP La Union Lending Group head Jesus Alegre, Jr. said one of requisite for opening credit facility with the government bank is a resolution from the city council authorizing the city chief executive to enter into an agreement with the same for the loan agreement.

However, he said city government can draw the amount either to fund projects of the city or a single project to improve overall state of the city.

Under the proposed omnibus term loan facility, the duration of the loan will be 20 years with a 3-year grace period.

Mayor Benjamin B. Magalong said the stand-by credit facility will only be drawn if the city government needs the available funds for its priority development projects, particularly the construction of modular pay parking structures in strategic areas in the different parts of the city to help provide motorists with available parking spaces to help the ease the worsening traffic jams in the city.

He said the credit fund to the city government by the bank and the Development Bank of the Philippines (DBP) shows good financial standing of the city.

Earlier, the DBP also opened a P10 billion stand-by credit facility for the city government to bankroll its high-impact development projects, such as the re-development of the city’s public market, the put up of pay-parking buildings, among others, to achieve the present administration’s 15-point agenda.

The city chief executive transmitted to the City Council the LBP loan agreement for the issuance of the authority for him to enter into the same to make available the stand-by credit facility for the city government to avail anytime it will need the funds for it’s the implementation of big-ticket projects the soonest.

One of the present administration’s 15-point collective agenda is the modernization of the city’s public market to make it one of the best market facilities in Southeast Asia based on the approved architectural design for the multi-billion market re-development project where funds for the purpose will be drawn from any available source.

                Among the possible modes of funding the projected P6-billion market re-development project include the acquisition of loan from government financial institutions, turn-key proposal, joint venture with established market developers, and partnerships with market cooperatives.