Paracelis folks hit P30-M LandBank loan of LGU

By Gina Dizon

PARACELIS, Mountain Province – Folks of this remote town assailed municipal officials for not informing the public of a P320 million loan for construction projects among them, a farm to market road project whose location was reportedly not indicated.

They said the FMR was a prelude to a “ghost project.”     

 The Land Bank based in Tabuk City, Kalinga, a few kilometers from here, approved the loan application of the Paracelis local government.

In a follow up letter to Paracelis Mayor Marcos Ayangwa, the public said they wanted to clarify matters on the proposed loan but were frustrated no one from the municipal government attended a meeting to discuss the matter.  

Former municipal councilor Mike Assud said there were only two barangays out of nine who attended a prior Municipal Development Council meeting which earlier discussed said loan proposal.

Assud asked why location of the proposed P85 million FMR was not indicated saying a waterworks system was more a priority.

During said meeting, Fr Mario Awilan of  San Gabriel Catholic Mission asked officials of Paracelis: “Why did you hide this loan to people for almost four months.”

Approved by Land Bank on April 2 this year, the P320 million loan was designed to partially finance  construction of new multipurpose hall at P80 million, water system level 3 at P80 million, central terminal at P10 million, engineered sanitary landfill at P10 million, five units of new health centers at P25 million, equipment for sanitary land fill at P30 million, P30 million expansion of motor pool through the acquisition of new  heavy equipment – one unit wheel loader,  backhoe,  and 4 units wheeler dump truck; and counterpart for Philippine reconstruction rural development project (PRDP) of an FMR at P85 million.

           Participants during meetings urged the loan be lowered and recommended that the waterworks system be prioritized and FMR projects be identified by barangays.

As part of the loan requirement, the Sangguniang Bayan of said LGU in a resolution dated March 2, 2020 authorized Mayor Ayangwa to apply for a P320 million loan with Land Bank “to improve social services and increase local revenue sources through its economic enterprises.”

Ayangwa conformed to the loan on June 22, 2020.

 Said loan shall be paid in 15 years inclusive of 3 year grace period with interest prevailing during the time of availment of the loan and collateral using 20% of the internal revenue allotment (IRA) of the LGU.

An environmental compliance certificate (ECC) from the department of environment and natural resources (DENR) on the project-sanitary land fill- and a barangay resolution where the project is located was required by Land Bank.