BACOLOD City – The Sangguniang Panlungsod has granted Mayor Evelio “Bing” Leonardia an authority to enter into a P1.7-billion loan agreement with the Development Bank of the Philippines.
Councilors also approved a borrowing ordinance in compliance with a Bangko Sentral ng Pilipinas requirement.
The city council gave Leonardia permission to sign the Term Loan Agreement and Continuing Deed of Assignment with Holdout Agreement on behalf of the local government.
Eleven councilors voted in favor of the borrowing ordinance during their session on Monday. One voted against it while two were absent.
The authority to sign and the borrowing ordinance were requirements for the city government to avail itself of the loan, said Councilor Caesar Distrito, chairman of the committee on laws, ordinances and good government.
Next week the city council will tackle the ratification of the Memorandum of Agreement in connection with the loan.
The amount will fund the city government’s flagship projects for next year.
Such projects include the construction of the Bacolod MassKara Coliseum (P800 million), development of the Progreso Village Relocation Site (P350 million), Bacolod City College site development (P350 million), and construction and rehabilitation of roads and bridges (P200 million).
No one opposed the planned loan during a public hearing that his committee held on Monday, said Distrito.
Distrito previously said that part of the BCC site development project is the construction of more school buildings to “increase its capacity to accommodate more indigent students,” and a school gymnasium.
The development project at the Progreso Village Relocation Site, on the other hand, aims to make the area more livable via the construction of roads and drainage systems, he said.
The Bacolod MassKara Coliseum, with its 10,000 seating capacity, will enable the city to host bigger sports and cultural events, conventions and conferences, he added./PN
