Landbank Eyed as Potential Infra Project Fund Source

The City Council has been studying Land Bank of the Philippine’s (LBP) offer to lend the city a total of 5.5 billion pesos to fund its major infrastructure projects.

Mayor Benjamin Magalong said that LBP, aside from Development Bank of the Philippines, can be a potential source of funding for economic enterprise projects such as parking buildings.

“So, we are looking at this as a potential source of funding for our parking buildings, but not for the complicated parking buildings, this is only for the modular parking buildings,” Magalong clarified.

Magalong emphasized that economic enterprise like parking buildings can generate fund that could pay for the borrowed money.

“It’s an economic enterprise wherein the revenue that we can generate from that project will be able to pay for the loan, wala tayong subsidy,” Magalong said.

Jesus Alegre Jr. of Landbank said the loan is available for three years upon approval.

“The availability period of the loan, of the approved loan is three years but if one project, at least one drawdown should be made within one year para po active pa rin siya,” Alegre explained.

(The availability period of the loan, of the approved loan is three years but if one project, at least one drawdown should be made within one year for it to be continuously active.)

On Monday, the City Council requested Landbank to provide a copy of the Memorandum of Agreement (MOA) for assessment before authorizing Magalong to enter the contract.

by Jaira Palpallatoc