The Bacolod Sangguniang Panglungsod yesterday ratified the loan agreement entered into by and between the Philippine National Bank and the Bacolod City Government after authorizing Mayor Evelio Leonardia to sign it during a special session yesterday. Those who approved the ratification of the contract and gave the Mayor authority to sign it were Councilors Al Victor Espino, Dindo Ramos, Jude Thaddeus Sayson, Greg Gasataya, Homer Bais, Napoleon Cordova, Arturo Parreño and Marx Louie de la Rosa.

Those who voted against it were Councilors Catalino Alisbo and Elmer Sy, while those who abstained were Councilors Ana Marie Palermo and Reynold Iledan, who left the session hall before the contract was ratified.

Councilor Jocelle Batapa-Sigue was on sick leave while Councilor Lyndon Caña said he was already in Manila when informed that there will be a special session to be held yesterday.

An executive-legislative caucus was also held with the officials of PNB represented by Victor Sison and Josefino Gamboa, who informed the city officials that the loan facility that was approved on Aug. 18, 2006 still exists and will expire tomorrow.

PNB has offered the city a maximum loan P400 million but its basis of release will be the loan contract price of P395 million to payable in 15 years, at an interest rate of 8.25 percent. The interest charged by Land Bank is about 9 percent.

Vice Mayor Renecito Novero said the loan agreement with PNB does not provide a condition that the release of the loan will be affected by any case filed against the city or the project since it is privately-owned compared to LBP which is government-owned.

He said that, in order to protect the city, the PNB people will look into the quality of the materials delivered and work done, and the amount of completion of the project and will release the amount to the contractor based on the judgment or recommendation of their technical people.

Leonardia said "The contract with PNB was a necessary step to avert a crisis and prevent a disaster because we are faced with the danger of the city having to pay Hilmarc's Construction Corp. about P40 million and the city getting nothing."

He said it was also a situation that endangered the 5-hectare lot donated by the Gonzaga family that is worth P140 million, which could even be worth more than that now.

This was a time that called for decisiveness, Leonardia said. He thanked Vice Mayor Renecito Novero and the members of the SP who shared this vision and cared enough to spare the city from the disaster of having to pay HCC and losing the donated property.

In fact, Leonardia said, this is a blessing in disguise because it seems that PNB is giving a better deal at a lower interest rate. "So I appeal to all saboteurs and detractors to please give this project and our people some peace," he said, adding "Let us give progress and development a chance."

The contract between the city and PNB was notarized yesterday by Vicente Petierre III of the City Legal Office.

Meanwhile, Councilor Al Victor Espino, who was supposed to take a 6 p.m. flight to Manila last night to take his oath as city chairman of the Kabalikat ng Bayang Pilipino (KAMPI), had to remain until the session was over, being the chairman of the Committee on Appropriation and Finance.

"I feel that the call of the people for a government center is more important than politics right now," Espino said. He said that if the party decides not to appoint him city chairman of KAMPI because of his absence, he was willing to face that possibility.*CGS

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