Toledo City inks P1.3B loan deal with LBP

MAJOR infrastructure projects may soon break ground in the midwestern City of Toledo.

Mayor John Henry Osmeña announced in a post on his Facebook account that the city has entered into a P1.3-billion loan agreement with Land Bank of the Philippines (Landbank) to fund some of the city’s major projects.

Among these projects are port facilities, a coliseum, a community center and market renovation among others.

“The loan is payable in 15 years with maximum of two years grace period on principal with fixed rate of 3.75 percent per annum for five years, subject to semestral review of loans and deposits,” he said in his post.

The loan agreement was recently signed by Mayor Osmeña together with Assistant Vice President and Landbank Cebu Lending Center head Allan Bisnar and their legal officer John Glenn Bollozos last Thursday.

Osmeña said they needed the loan in order to fund projects included in the city’s Annual Investment Plan (AIP).

Among those, he said, is a P500-million project for port facilities. Another P600 million is planned for the construction of a Toledo City Sports and Cultural Center.

He also mentioned the establishment of a community center, specifically a senior citizen building, and other government offices for P100 million.

Another P181.4 million will be set aside for the renovation of the city’s Poblacion Public Market.

Also in his post, the mayor quoted Toledo City Treasurer Leonardo Rivera saying that the city can start paying two years after the first tranche of the funds is released by the Landbank. This will be done for each project to be implemented.