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Bohol towns urged to avail of borrowing program

BOHOL Governor Arthur Yap has urged all Local Government Units (LGUs) to avail of the “Provincial Borrowing Program” to finance their infrastructure projects at low interest rates.

Yap told Cebu Business Week that under the Bayanihan 2 Act, Land Bank of the Philippines and Development Bank of the Philippines (DBP) were given P40 billion to lend to the private sector and LGUs.

If a town will borrow from Land Bank or DBP for infrastructure projects, the interest is only two percent per annum for the first two years. If the loan duration is 10 to 15 years, the normal bank interest is 10 percent, but the LGU can negotiate for a four percent.

“The LGU must borrow for their infrastructure needs. Anyway, in the coming years, the Internal Revenue Allotment (IRA) will be increased by the National Government based on the Supreme Court ruling of the case filed by Batangas Governor Hermilando Mandanas,” Yap said.

With the SC ruling, 81 provinces in the country can get IRA increase soon. So, they can pay if they will borrow money from Land Bank or DBP.

He said Bohol Province may avail of loan from Land Bank or DBP to give more funds for barangay water system.

“We are giving attention to the Bohol second district where 13 municipalities are classified by the Philippine Statistics Authority (PSA) as poorest among the poor. If we need to spend more funds for second district water system, we will do it. Water is basic in the economy” Yap said.

They have studied a water impounding project in Buenavista town in the amount of P6 million. But the Municipality of Jetafe seems to be not interested. I have to verify why, since the water system is for the people.

Yap added that Mabini Spring Development is his priority. Mabini is in the 3rd District where he was a congressman for nine years. ELIAS O. BAQUERO