The Land Bank of the Philippines (LBP) has offered to extend to the Cebu City Government a P2-billion credit line facility to fund its infrastructure projects.
Land Bank made the offer following the statement of some city councilors they would not approve the appropriations for infrastructure projects under the proposed P1.147-billion Supplemental Budget (SB) No.2 because the city has no funds for it.
In a letter to Cebu City Mayor Michael Rama dated Aug. 21, 2011, LBP Cebu Lending Center head Elsie Fe Tagupa said the bank is ready to provide loan funds to finance the city’s infrastructure projects.
Tagupa said the loan can be availed of anytime within three years from date of approval, provided that one of the projects will be implemented within the first year from loan approval date.
The interest rate, Tagupa said, will be based on the prevailing rate at the time the credit line facility was used.
Rama said he endorsed the LBP letter to the Sangguniang Panglungsod secretariat so it can be included in the agenda for its regular session Wednesday.
He said he hopes that with LBP’s letter, the issues that are causing delays in the approval of the SB 2 will now be resolved.
”If the council will not approve the budget despite LBP’s letter, it’s not my budget that they did not approve, it’s the budget of the people that they did not approve,” Rama said.
The council earlier said it will not approve the appropriations for infrastructure projects, including the rehabilitation of the Carbon Market Unit ll, among others, because there are no funds available.