Mayor Alfredo Abelardo Benitez said the P4.441 billion city government loan for 17 projects will further pump prime the economy of Bacolod that is “poised to take off as an economic power house in the Philippines”.
Benitez and Michael de Jesus, Development Bank of the Philippines president and chief executive officer, led the signing of the P4.441B loan agreement at rites held at the Bacolod City Government Center Thursday afternoon, April 27.
The mayor said the National Economic and Development Authority data shows that Western Visayas is now the fastest growing region in the country, with Bacolod having brought its average up.
The NEDA report said the economy of Western Visayas in 2022 grew by 9.3 percent valued at P955 billion, citing its Gross Regional Domestic Product. This is higher than the national average that was 7.6 percent, Benitez said.
“The fastest way to pump prime the economy is through expenditures in infrastructure. The national government has said it is one of the strategies they have adopted. We will also do the same,” Benitez said.
The projects to be implemented with the P4.441 billion will “insure the rapid development of our economic environment”, he said.
The mayor thanked the Bacolod Sangguniang Panlungsod members for approving the loan agreement with “tremendous speed” and the barangay captains for approving the projects to be covered by the loan.
“We all agreed that it is better to take the bull by the horns. This is the reason why we have this loan with the DBP. We want to be at the helm of economic development,” Benitez said.
Benitez said he will submit the intended projects to be funded by the loan to the SP next week for its scrutiny.
Pump priming the economy through infrastructure will create jobs for a lot of Bacolodnons, especially construction workers, and will have a trickle down effect on other businesses, Benitez said.
Benitez thanked DBP for giving Bacolod the best deal that will redound to the benefit of its residents.
The loan will have a 3.55 percent interest rate per annum payable in 7 to 15 years, Bernardo Castillon Jr., DBP Bacolod Lending Center senior manager, said.
Benitez said the interest rate given by DBP to Bacolod is even lower than that the ASEAN and US rates.
De Jesus thanked the city government for giving DBP the opportunity to be of service.
“We value you as a client and we hope to continue to provide you the level of service that you expect from us and that you deserve,” he added.
To be funded by the loan are acquisition of lots for various development projects – P1.5 billion, legislative building – P515 million, mini hospitals in five barangays – P135 million, rehabilitation of Old City Hall – P223 million, improvement of public markets – P525 million, construction and improvement of roads – P270 million and various drainages – P300 million, asphalt overlay of various roads – P50 million;
Construction of Bacolod warehouse – P67.9 million, city engineering motorpool area – P30.8 million, improvement of tree park in Barangay Alangilan – P47 million, construction of pedestrian mall – P50 million, City Health Office complex – P220 million, recovery and recycling complex and ecopark – P103 million, furniture and equipment – P279.3 million, solar power generating systems of various barangays and Bacolod City Government Center – P100 million, and traffic signalization – P25 million.
Benitez said he removed projects that can be funded through public private partnerships from the list, such as the underground cabling for telecommunication firms.*