A resolution authorizing Mayor Evelio Leonardia to sign a P400 million loan agreement with Land Bank of the Philippines for the construction of a government center was unanimously passed yesterday by the Sangguniang Panlungsod during the special session requested by the mayor.

The signing of the memorandum of agreement between the city and Land Bank of the Philippines will be held at 3 p.m. today at the City Mayor's Office.

"This is the brighter side of 9/11!" Leonardia said as he thanked the SP for the unanimous expression of support. "Henceforth, September 11 will be day of beautiful remembrances for Bacolod City," he added.

"I believe that one of the biggest factors that got them to approve the request is the fact that the loan repayment program was convincing and the effect on the development fund is very minimal," he said. He said that even if he is supposed to decide on the loan source, he urged the SP members to do it, hence the request for the special session. But he asked them to do it soon, because they do not have the luxury of time.

Councilor Thaddy Sayson said LBP has offered the city a loan interest of not more than 9 percent per annum for 15 years.

REPAYMENT SOURCES

Leonardia said the P400 million loan is just the maximum amount, and the city will not get the loan in lump sum but it will be released on installment basis, and the payment will also be on installments.

He said the payment for the loan will come from the salary savings so no projects will be affected, the expected higher income from increased real property taxes, the increase also in the Internal Revenue Allotment, and in the city's tax collection efficiency.

"Conservatively, we estimate that the IRA will increase by 5 percent every year and we expect Bacolod to have an IRA of at least P400 million next year," Leonardia said.

He said he encouraged the SP members to raise questions during a caucus held yesterday, before the special session. He said he appealed to them and told them that if they lose the donation, the city might have to buy its own lot and then the price of the property would be astronomical.

Leonardia said that 40 years ago, former Bacolod Rep. Romeo Guanzon asked for a donation of 20 hectares, and in 1997, or 30 years after, he also asked for a donation and the most that he got was 10 hectares.

After 10 years, he said, he was given 5 hectares noting that the size of the property being donated is diminishing.

BARANGAYS RESPONSE

Felixberto Verba Jr. of Brgy. 10 said 38 barangay captains signed an urgent request or appeal to the SP yesterday that the city has only until Dec. 31 to start the project, or the property will revert to the owners.

He said he believes others who have not signed are also in favor of the project. "If they don't avail of the opportunity, there will come a time when no one will ever donate again and the city will have to spend to construct a government center," Verba said.

Alab Katipunan also submitted a letter of appeal to the SP yesterday asking them to thoroughly study the proposal and not to rush the approval of the proposed P400 million loan. The group said the Mayor has no master plan for the project and questioned the computation of the loan.

Councilor Ana Marie Palermo said the authority they are giving the Mayor is subject to compliance with all necessary and pertinent requirements provided by law in relation to the loan agreement.

But she also said, the city already has a master plan, citing the Land Use Plan of Bacolod City, which includes, among others, the construction of a government center.

Asked to comment on the text messages and black propaganda against his plan to construct a government center, Leonardia said the people opposing the project are also the ones saying he has no project. He believes they don't want him to perform.

"While we are trying to protect the P140 million property, so generously given to us, they want to throw it away because of their political agenda," he said.

Leonardia said he had consulted the city officials and organizations down to the barangays and puroks and overwhelmingly, the response was that the people believe the city needs a new government center and are happy that it is about to be realized.

In the absence of Vice Mayor Renecito Novero who was attending an activity of the Vice Mayor's League yesterday, first councilor Greg Gasataya presided over the special session that passed the historic resolution.*CGS

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