Capitol hastens P100-M loan for heavy equipment

By Florence F. Hibionada

The Iloilo Provincial Government is fast tracking its application for a P100 million from the LandBank of the Philippines for the purchase of heavy equipment.

Capitol executives said that the purchase of new dump trucks and other heavy equipment is long due, and that the government's present fleet of equipment has become too expensive to operate and maintain.

“That's not to mention the 'downtime' or periods of inactivity due to repair work,” a top Governor's aide pointed out in pushing for the purchase with the loan approval now in the works before the Sanggunian Panlalawigan.

The proposal stemmed from the June 2, 2005 letter of Provincial Engineer Gracianito Lucero. The very next day Governor Niel Tupas issued Executive Order No. 186

creating an inter-office Committee on the Purchase of Various Heavy Equipment chaired by Provincial Administrator Manuel Mejorada.

Mejorada recommended the gradual phase out of the existing dump trucks and the corresponding acquisition of new ones as replacement in a letter to Tupas dated June 6.

Additional units are to be bought as well, Mejorada added saying such are needed “to improve our capability for road maintenance, construction and rehabilitation work.”

There is also a need for more pay loaders, road graders and backhoe/loaders, the Governor, particularly the Provincial Engineer's Office and the National Irrigation Administration in need of heavy equipment for the repair and rehabilitation of the province's irrigation system.

“The estimated cost of acquisition of new equipment is One Hundred Million Pesos (P100,000,000.00) This amount is still within the borrowing limit of the Province of Iloilo,” Mejorada in his report to the Governor wrote, adding that “in our recent meeting President Gary Teves of the Land Bank of the Philippines, he indicated that this government financial institution is willing to waive the usual requirements to make it easier for the Province to avail of financing for this purpose.”

If LBP grants the loan and the Capitol purchases additional equipment, the province will have ten units of dump trucks, three units of road graders, two units pay loader and one unit of backhoe/loader.