City Council OK's P350M loan to build new City Hall
Mayor Jerry Treñas has all the reason to smile as the Sangguniang Panlungsod (SP) gave him authority to negotiate with the Land Bank of the Philippines (LBP) to borrow P350 million for the construction of a new six-storey city hall building in its present site in Plaza Libertad.
In last Wednesday's session, the council approved a resolution authorizing the chief executive to negotiate, enter into a memorandum of agreement with the LBP, subject for the ratification of the Sangguniang Panlungsod of Iloilo, laws, rules and regulations.
The said resolution was authored by Councilor Jed Mabilog, chair of the committee on engineering, construction and public works. Mabilog said the city needs a city hall which will serve as the window to showcase the city to all the tourists coming here.
Mabilog added the city, being a highly urbanized city in the Philippines, needs a spacious city hall to accommodate all its employees in a single building. Presently, the city government offices are situated in different locations.
The City Mayor's Office, City Treasurers Office, General Service Office and several others are housed in the old city hall building while the SP are occupying the second floor of the Iloilo Terminal Market. There are also city government offices that are located in the old Commission on Audit (COA) building which is adjacent to the old city hall building in Plaza Libertad.
Mabilog said the existing city hall is already dilapidated and not conducive to the public and employees alike.
Meanwhile, Majority Floor Leader Eduardo Peñaredondo said the city has the capability to pay the loan. The city government has the credit line as high as P2.5 billion in the LBP.
Peñaredondo said the credit line is based on the city's 20 percent Internal Revenue Allotment (IRA) and amount of business taxes collected. Currently, the city is paying only the loan it acquired from the housing project. The city has already finished paying the loan from its Regional Cities Development Project (RCDP).
As soon as the MOA is confirmed at the city council, the funds will be released for the construction. He said the construction will tentatively start this October. The building is a blend of the old and modern architecture.