SP approves 683M Capitol loan
ROXAS CITY – The Sangguniang Panlalawigan (SP) during the special session on Friday has confirmed and ratified the loan agreements and its amendments providing credit facility, which Capiz Governor Victor Tanco, Sr entered into with the Philippine Veterans Bank in the amount of P683,160,000.
The resolution was supported by 10 pro-administration board members except Board Member Gilbert Ardivilla who maintained his opposition to the provincial government’s proposed loan.
Those who supported the loan were Board Members Vincent Frits Cruz Am, Nenita Martelino, Baden Cantiller, Winston Advicula, Nonoy Contreras, Ricky Martin, Rommel Lastimoso, PCL President David Bauson, Alfonso “Bo” Bediones and Raymund Locsin.
Included in the resolution are corresponding memorandum of agreement, promissory note and deed of assignment in order to pay off the provincial government’s loan obligations with other banking institution and to finance its various development and priority projects.
Under the loan agreement, the loan will be released through six tranches such as: 1, take out/refinancing of Land Bank of the Philippines; (with 2 subtranche) 2, design and construction of Capiz Government Business Center; 3, Land Acquisition for the site of the provincial engineering office; 4, design and construction of the Capiz Rehabilitation Center with a sub-tranche for Land Acquisition for the project; 5, Concreting of provincial roads in various locations with a total aggregate stretch of 40 kms.; and 6, Construction of the Provincial Transport Terminal with sub-tranche for Land Acquisition of the project site.
Provincial Budget Officer Antonio Arbis said that the loan is payable in 10 years.
Tanco was authorized by SP through Resolution No. 136, Series of 2007, dated October 11, 2007, to negotiate and enter into a loan agreement with any banking institution to augment the provincial resources in the implementation of priority programs and projects in agriculture, infrastructure, socio-economic, health and other form of services.
Earlier, the provincial government lost its opportunity to avail of a loan amounting to P210 million from United Coconut Planter Bank (UCPB) to finance a one-stop-shop business center in Brgy. Tiza here.
Provincial Legal Council Lawyer Jose Villanueva, who blamed Ardivilla for his opposition, said that UCPB backed out from granting the loan because they considered the issue a sensitive matter.
The provincial government, it its second efforts to propose loan, has succeeded and finally will avail of the loan, which will cover the said business center.
Meanwhile, Ardivilla said that he opposed the said projects because these needed thorough study by experts and should not be hurried.
The same opinion was also shared by Vice Gov. Felipe Barredo, a presiding officer, saying that the loan should be discussed by SP thoroughly. “This is not the end of the world so as to hasten the loan,” he said.
