Capitol, LBP sign Php 200 million loan for heavy equipment

The Cebu Provincial Government got a green light to start the bidding process of 11 types of heavy equipment worth Php 200 million.

Governor Hilario P. Davide III signed a loan agreement with Landbank of the Philippines Senior Vice President Daisy Macalino last July 1 at the Capitol. LBP Vice President Elsie Fe Tagupa also signed the loan agreement in the presence of Provincial Board Members Grecilda “Gigi” Sanchez and Celestino “Tining” Martinez III.

The loan is payable in five years. But Governor Davide may settle the obligation within a year depending on the result of the 2016 election.

Officer-in-Charge Provincial Treasurer Emmanuel Guial said the governor does not like to burden the next administration of paying the loan so he might want to pay it early.

Guial said they still have to wait for the monetary board opinion regarding the loan before the funds could be released by LBP. But with the notice of approval of the loan, the Capitol may start the procurement process.

The current administration was strongly moved to purchase heavy equipment after experiencing problems in the clearing operations and repair of damaged roads in the typhoon-hit southern Cebu last year.

The Capitol received several requests of bulldozer, loader, grader and other heavy equipment from the different local government units. But the previous administration retained only one bulldozer and a grader.