More LGUs seek BSP approval of P 25B in loans

The cities of Manila, Puerto Princesa and the provinces of Samar and Misamis Oriental are among the local government units (LGUs) that have sought the approval of monetary regulators to take out large loans to fund projects in their areas, according to the central bank.

Data released by the Bangko Sentral ng Pilipinas showed that the City of Manila sought its approval for a P5-billion loan that would be used to fund the redevelopment of the Manila Zoo, the construction of resettlement housing projects named “Binondominium” and “Tondominium” and the construction of a new Ospital ng Maynila and a parking building.

Meanwhile, the capital city of Palawan wants to borrow P1.4 billion for the procurement and installation of urban street lighting facilities, the central bank said, as part of its semestral report on LGUs seeking the clearance of the Monetary Board to take out new loans.

For the first semester of 2020, the BSP received 93 requests for Monetary Board opinions from local governments on their proposed loans amounting to P25.1 billion. The number of requests were higher by 31 percent from 71 requests received in the second half of 2019.

Requests for Monetary Board opinions processed in the first half of this year came from 11 provinces, 13 cities and 69 municipalities.

The province of Samar also lodged an application for a P3.1-billion loan whose proceeds would be used for the repair and rehabilitation of the Calbayog hospital, embankment and reclamation infrastructure work and the construction of the Samar provincial hospital.

Misamis Oriental wants to borrow P1.5 billion for the construction of a bridge, acquisition of road rights of way, the construction of a provincial jail building and the acquisition of heavy equipment.

Of the total number of local government requests, 78 applications or 83.9 percent were rendered a favorable Monetary Board opinion, with a total loan amount of P22.3 billion.

The processing of the remaining 15 requests were deferred due to incomplete documents or information submitted.

Among the 17 Philippine regions, the biggest number of LGU requests came from Region 12 at 14.1 percent. INQ