LINGAYEN–The provincial government does not need a loan nor is securing one at this time to fund its planned infra projects. Not yet anyway.

This was disclosed before deadline by Provincial Administrator Rafael Baraan who branded the negative reaction in local media to the supposed P950 million letter of credit being offered to the province by different financial institutions as sheer disinformation and an “over-reaction”.

In a telephone interview with The PUNCH, Baraan’s statement put to rest the contentious issue about public loans which surfaced soon after Governor Amado Espino Jr. briefed the provincial board on Monday about the present State of the Provincial Government.

“There is no need for us to borrow. We have sufficient funds to implement important and basic development programs and projects,” Baraan said, chiding critics including members of the media, for their unfounded reaction to the rumored availment of P950 million letter of credit with the Land Bank of the Philippines by the Espino administration.

He said talk of the P950 million letter of credit cropped up only because the Land Bank, Philippine National Bank, Postal Savings Bank and the Philippine Veterans Bank separately offered their services to the provincial government.

“It simply speaks of the banks’ confidence in the province’s capability to pay,” Baraan pointed out.

He clarified that there has been no decision to avail of any of the offers.

He made it clear that these banks evidently offered the P950 million loan facility as an acknowledgment of the province’s capacity and capability to secure and pay off the loan over the years.

At present, Pangasinan already has an outstanding loan with Land Bank in the amount of P350 million secured by the Agbayani administration for the rehabilitation of the province’s irrigation systems.

Baraan said even if the province is presently paying P13 million a month for that loan, the banks are obviously confident that the province has the capacity to secure and pay for additional loans.

Pangasinan has an Internal Revenue Allotment of P1.4 billion yearly, one of the biggest in the country given Pangasinan’s land area and population.

Baraan added that if the provincial government decides finally to get a loan later, due process will be undertaken, meaning complying with all legal requirements and submitting the justification of the projects to be funded to the provincial board.

Earlier, Board Member Alfonso Bince Jr. reacted sharply to the reported P950 million letter of credit offered by Land Bank after he read an unsigned resolution filed before the provincial board about the loan.

Baraan said the resolution was intended merely to acknowledge the offers made by the banks to Pangasinan for a letter of credit of P950 million.

Bince said he will oppose a move to obtain a letter of credit for P950 million because that would be tantamount to issuing a blank check to the province to fund whatever the executive may decide. He said only a direct loan for a specific project will be acceptable to him.

Bince even warned that the province can not use its money for projects like the seaport because it is a national project.

While Baraan clarified that the provincial government will not fund the seaport project per se, as a public corporation, it is not prevented  from  entering into a  joint venture  agreement with any entity in building and  operating the facility since  it is considered an income-generating project for the province.—LM

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