Capitol secures P1-B Landbank loan for projects
LINGAYEN– The provincial government recently secured a P1-billion loan from the Land Bank of the Philippines (LBP) to fund various developmental projects described in the province’s Annual Investment Plan.
This was confirmed by OIC-Provincial Accountant Arturo Soriano who witnessed the signing of the loan agreement last Thursday at the Urduja Palace.
He said the loan was arranged to fund mainly infrastructure projects that include roads and bridges construction, tourism development infrastructures, irrigation systems and other support to farmers, housing projects, and upgrading of hospitals including the construction of the new complex at Pangasinan Provincial Hospital and procurement of equipment.
Soriano said, the maximum debt service or borrowing capacity set by the Bureau of Finance for the province is P2.4-billion “but we only availed of P1-billion, because we might have difficulty with amortization if we went for the maximum.”
“The P1-billion loan is just enough and will not affect the provincial government’s statutory obligations particularly salaries of the employees,” he said.
The loan will be amortized over a ten-year period.
LBP made the loan offer to the provincial government because of the provincial government’s good credit-rating or good-paying status, Soriano said.
He explained that although the province has savings to spend, it opted to borrow from LBP with the authorization from the provincial board to be able to fund the “big projects.”
The loan will be released in parts upon the completion of every project.
Meanwhile, Cecilia Borromeo, LBP executive vice president/head of Agricultural Development Lending Sector who represented LBP president Gilda Pico, cited the bank’s “very satisfactory relationship” with the provincial government of Pangasinan.
“We are very inspired by the development plans of the province as most of the projects are also considered priority sectors of Land Bank so we are very happy and proud to be partners with Pangasinan,” she said.
Other personalities at the loan signing agreement were LBP officials Filipina Monje, Jaime Cruz Jr., and Liza Melendez. Provincial Administrator Rafael Baraan led the department heads. (Johanne R. Macob)
Share your Comments or Reactions
Powered by Facebook Comments
