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Bohol SP allows Yap to borrow up to P2 billion

THE 28th Sangguniang Panlalawigan (SP) of Bohol has given its go signal to Governor Arthur Yap to avail of the Omnibus Term Loan Facility (OTLF)/Credit Line of the Land Bank of the Philippines (LBP) in the amount of P2 billion.

The amount is said to be the biggest loan so far in the history of Bohol.

SP Resolution No. 2021- 271 passed during the regular session approved the P2 billion credit line by a 9-2 vote with eleven SP members present and no abstention.

The approved resolution “authorizes the Local Chief Executive of the Province of Bohol, to represent the Provincial Government of Bohol (PGBh) to avail of the Omnibus Term Loan Facility (OTLF)/Credit Line of the Land Bank of the Philippines (LBP) amounting to Two Billion Pesos (P2,000,000,000.00), thus allowing the Provincial Government of Bohol to have a Standby Credit Facility with LBP for drawdown to fund the proposed One Billion Pesos (P1,000,000,000.00) loan for its various water development projects.”

Governor Arthur Yap can now borrow P2 billion to spend for his water projects The measure was sponsored by Majority Floor Leader, 1st District Board Member (BM) Ricky Masamayor and co-sponsored by Vice Governor and SP Presiding Officer Rene Relampagos.

According to the journal of proceedings of the SP session on March 9, 2021, Relampagos stressed that of the maximum amount of P2 billion Omnibus Term Loan/ credit line, the Province of Bohol will only make use of the P1 billion which is part of the 2021 annual budget of the province.

Relampagos said that according to Cecilio Clarete, head of the Bohol Lending Center of LBP, the interest payment for the P1 billion loan is at two percent per annum under the Bayanihan Law, according to.

“The loan that will be availed of by the Provincial Government which has already been approved by us previously in the amount of One Billion Pesos will be a supervised credit by the LBP and the release of funds of the loan availment will be based on actual accomplishments of the individual projects under the program,” Relampagos stressed.

Masamayor said water projects of the LGUs will undergo bidding under Republic Act 9184 known as the “Government Procurement Reform Act.”