SP approves P6-B Land Bank loan for Guico projects

By February 26, 2023Headlines


THE Sangguniang Panlalawigan (SP) approved on Monday a resolution authorizing Gov. Ramon Guico III to negotiate and enter into a loan agreement with the Land Bank of the Philippines in the amount of six billion pesos (P6,000,000,000.00) under the terms and conditions of the Omnibus Term Loan Facility (credit line) to finance strategic programs and projects of the province of Pangasinan.

This was contained under Provincial Resolution No. 188-2023 jointly authored by Third District Board Member Vici Ventanilla and Vice Gov. Mark Ronald Lambino based on Guico’s Feb. 15, 2023 letter regarding the Provincial Government’s intention to seek a loan agreement with the Land Bank of the Philippines in the amount of P6-billion under the terms and conditions of the Omnibus Term Loan Facility.

The resolution cited the following activities that will be financed by the P6-billion Omnibus Term Loan Facility (Credit Line) with the Land Bank of the Philippines:

For transportation, Pangasinan East-West Expressway (PEWEX) – North Alignment (P1-B) Terminals, Land Ports and Bus Stops (P100-M); Ports and Marina (P100-M); Bani Airport (Salt Farm) P150-M); Lingayen Airport Expansion (Terminal, Runway Exit and Land Acquisition) P100-M) a sub-total of P1.450-B.

For government centers: Capitol Complex (P300-M); Corporate Center (P400-M); Bugallon Government Center (P100-M) for a sub-total of P800-M.

For tourism, Hotel (Capitol Complex) (P800-M); Amphitheater Phase 2 (P150-M); Amphitheater Mall (P300-M); Hundred Islands Resort (P300-M); Salt Farm Resort (P400-M) for a sub-total of P1,950-B.

For education, Pangasinan Polytechnic College/University (P400-M).

For health, PPH-Urdaneta City (P300-M); PPH-Lingayen (P250-M); PPH-Tayug (P250-M); PPH-San Carlos City (P300-M); PPH-Binalonan (P150-M); PPH-Umingan (P150-M) for a sub-total of P1,400,-B.

The resolution cited Article 394 (a) and Article 395 (a) of the Implementing Rules and Regulations of RA 7160 that say a LGU may create indebtedness and avail of credit facilities to finance local structure and other socio-economic development in accordance with the approved local development plan and public investment program, and may contract loans, credits and other forms of indebtedness with any government bank to finance the construction, installation, improvement, expansion, operation, or maintenance of public facilities, infrastructure facilities, housing projects, the acquisition of real property, and the implementation of other capital investment projects .

It also cited Article 395 (d) that provides that an authority of an LGU to incur loans, credits, or other forms of indebtedness shall be exercised through a sanggunian resolution, which shall expressly authorize the governor, the city mayor, the municipal mayor, or the barangay chairman concerned to negotiate and enter into contract for purposes of securing the loan. (Eva Visperas)

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