MANGLADAN – All systems go for this town’s Sanggunian Bayan (council) to pass a resolution on July 14 giving authority for the mayor to borrow P40 million loans in the Land Bank of the Philippines for the construction of the public market here.
He said Councilor Bernabe Cervas, chairman of the Committee on Public Market, declared there it would be the last hearing of the series of hearings on the P40 million loan.
“Involving public fund dapat mag conduct ka ng committee hearing aside from the public hearing para wala masabi mga opposition na ni railroad iyong project”.
He said one of the other three hearings was conducted last May at the Sanggunian Bayan.
“Binigyan na ng opportunity ng SB ang mayor, vice mayor, opposition, and even the members (of militant) group Bayan to attend the hearing”.
He said the resolution can be passed on July 14 as members of the August Body meet for their session every Monday of the week.
Councilors Cervas and Alfredo Soriano confirmed to this paper that the council will approve on Monday the resolution authorizing Mayor Bona Fe de Vera –Parayno to enter into a contract in behalf of this town to avail of the P40 million loan for the construction of the Phase II of the public market.
Those members of the Sanggunian Bayan who opposed the resolution for the loan have been Vice Mayor Manuel Casupang and Councilor Joel Meneses.
“With the duo blocking the passage, there could be no stopping for the other eight members who are in favor for it. In reality the opposition is only Meneses as the Vice Mayor is only a tie-breaker,” the source cited.
He said the issue raised by Councilor Meneses at the recent public hearing was how much will be the penalty incase this town can not pay its amortization.
Although the apprehension of the lawmaker is remote, officials of the bank told him it would be 2 % of the amortization.
“But it is remote to happen as the funds of this town through its 20 percent yearly development fund (DF) is more than enough to fund it. But just like the Phase 1 of the market, the Phase II would be income generating and would not disturb the 20 percent of the DF as it can fund the other projects of Mayor Bona”
The P25, 575,755 DF this year bankrolled the new infirmary, the slaughter house’s water treatment facility, the four shanties for the carabao merchants, one- stop- shop located at the ground floor of the main building of the municipal hall, and the multi-purpose hall and disaster center located at the 3rd floor of the same building.
“Income to be derived from the rentals of the public market kaya parang self-liquidation na. Walang magagalaw doon sa 20 percent development fund kung hindi kukunin mismo doon sa out of disbursement, iyong mga monthly rentals, business permits, good will money, etc.,” he cited.
According to Juan Garcia, the market administrator, this town has paid LBP P10 million as amortization last year.
He explained that Phase 1 averagely earns more than P1 million a month from the rents of the stall holders there.
The source said if the Phase 1 can earn P12 million a year and pays P10 million last year, this could happen too to the proposed Phase II that would not be income generating only but could provide jobs to those vendors who were dislocated when a fire gutted the public market in year 2009.
LBP will charge this town 6.5% interest yearly on the P40 Million loan. It used to charge 8% on the first P60 Million loan.
"It has reduced its loan probably because of the competition from Development Bank of the Philippines, Philippine National Bank, and other lending agencies that imposed lower interest rates to local government units," another source, who asked not to be named, cited.