Four city dads a no-show in P350 M loan signing
Four city councilors did not attend the signing of the P350 million loan agreement between the city government and the Land Bank of the Philippines (LBP) last Friday. The loan is intended for the construction of the seven-storey new City Hall building.
The four councilors were Perla Zulueta, Stevie Rey Abitang, Erwin Plagata and Armand Parcon. It was not immediately known why they did not attend the signing.
Those who attended the affair were Councilors Lex Tupas, Lyndon Acap, Julienne Baronda, Ely Estante, Marietta Orleans, Jose Espinosa III, Eduardo Peñaredondo and Jeffrey Ganzon. Vice Mayor Jed Mabilog was also present. Different department head s, bank officials and employees also attended the occasion.
The signing of the P350 million loan contract came at the heels of the controversy over Treñas's decision to enter into a contract with V.F. Solis Construction for the demolition of the old City Hall building without getting authority from the City Council.
The demolition contract amounted to P1,318,751.89.
The P350 million loan of the city government to the LBP is only the second loan the city had for the state bank. The first loan which amounted to P34 million was made in 2001. The loan was spent to finance the construction of the Iloilo Terminal Market.
The P350 million loan agreement was signed between Treñas and LBP President Gilda Pico. Vice-Mayor Jed Patrick Mabilog and Land Bank senior vice-president for Visayas Stellamaris Yusay acted as witnesses for the signing. The signing of loan agreement will pave way for the construction of the new city hall building.
Treñas said 'it was almost a dream" when he envisioned a new city hall building for the city. The construction of the new city hall building is one of the priority projects of his administration which was conceptualized two years ago.
The realization of this dream will 'put dignity to the offices of the city officials." Iloilo City is a highly urbanized city and it needs one building to house all the offices of the city government, said Treñas.
In his speech, Treñas admitted that he is not at liberty to disclose the interest rate offered by LBP. He, however said the future projects of the city government will not be affected with the loan and its corresponding interest rate. The loan is payable within 15 years.
Of the P350 million loan, the city government will also have a P30 million equity for the construction of the new city hall building. The city's equity will be taken from the different taxes such as from the Philippine Ports Authority.