Prov’l board OKs P758-M loan
LINGAYEN– The provincial board set into motion last week, July 20, the loan agreement of the provincial government with the Land Bank of the Philippines (LBP), in the amount of P758,149,708.38 to fund various infrastructure and developmental projects in Pangasinan.
The board ratified provincial ordinance 28-2015 that approved the sub-loan agreement and other supporting documents pertaining to the loan entered into by and between the provincial government represented by Governor Amado Espino Jr. and the LBP represented by its head, Pangasinan Lending Center manager Jaime Cruz Jr.
The projects to be funded by the amount include the asphalting/blacktopping/concreting of provincial roads, reconstruction/replacement of damaged/old provincial/barangay bridges, purchase of hospital/heavy equipment, construction/rehabilitation/repair of hospitals, construction/rehabilitation of communal, pump and shallow tube well irrigation system, acquisition of hospital equipment and quality control equipment, and acquisition of brand new water well drilling rig mounted with truck.
According to provincial accountant Arturo Soriano, the projects had the recommendation of the Monetary Board and were identified in accordance with the approved local development plan and public investment program calendar year 2014 or the annual public investment program for the current year 2015 of the province.
The term of the loan is 10 years, to be paid quarterly, at 5.5% fixed interest rate “for three years subject to quarterly re-pricing from 4th year onwards based on prevailing prime rate plus minimum spread of 1%.”
The provincial government of Pangasinan had applied for a loan drawdown from the approved Omnibus Term Loan Facility 2 from the LBP to finance the above projects.
The loan was already approved by the Loan Approving Group of LBP and the Governor was authorized by the Sangguniang Panlalawigan to enter into a contract/loan agreement with LBP.
The amount will be taken from the originally P1 billion approved term loan of the provincial government with the LBP.
Last year, the provincial government and the LBP held a loan signing agreement for the loan amounting P1-billion, citing the former’s good paying status.
The debt service or borrowing capacity of the province allowed by the Bureau of Finance was P2.4 billion but only availed of P1 billion. (Johanne R. Macob)
Share your Comments or Reactions
Powered by Facebook Comments
