Samar guv defends anew Php800-M bank loan application

CATBALOGAN CITY -- The provincial government will push through securing a Php800 million loan from the Landbank of the Philippines, as it would unlock economic opportunities in poverty-stricken communities.

Samar Governor Sharee Ann Tan reaffirmed their plan to apply for loan after a provincial legislator and local civil society organization launched a two-week signature drive, opposing the move.

“We badly need this loan to finance the construction of farm-to-market roads since this would jump start livelihood projects, which we have been pushing through for years,” Tan said.

Part of the loan will be used as counterpart fund for the World Bank-funded farm-to-market roads construction under the Philippine Rural Development Project (PRDP).

The Php804.76 million PRDP covers road construction in interior villages in the towns of Basey, Sta. Rita, San Sebastian, Pagsanghan, Motiong, and Villareal.

Under existing rules, recipient local government units are required to put up a 10 percent equity of the total cost of infrastructure projects.

Aside from counterpart of World Bank-funded projects, the local government will also use the loan to finance seven road constructions in Catbalogan City, Gandara, Jiabong, and San Jorge towns. The total cost is Php545 million.

About Php200 million of the loan will also be used in the construction of the first phase of the new Samar Provincial Hospital. Another Php100 million will be utilized to augment national government funds for infrastructure projects in rebel-infested areas.

Tan justified the need for a loan considering that all funds have already been allocated for the implementation of various programs.

“If someone would come and offer 90 percent of the project cost, why not put up 10 percent counterpart to realize the project?” the governor asked, referring to PRDP.

On fears that the loan might be used for election campaign, Tan assured that procurement activities are subject to existing regulations. For PRDP, she said the World Bank process is tedious.

“This is not intended for campaign since we have planned this project in the past long before the election period. Likewise, it is only this year that PRDP came in,” she explained.

The local government will be using the annual internal revenue allotment and of Php1 billion and provincial government properties as collateral. The loan is payable in 15 years, with an annual interest of five percent.

This week, various groups convened for a launching of two week signature drive, blocking the loan application. The target is to gather 600,000 signatures in 24 towns and two cities.

“It has begun. A signature campaign to petition the rejection of the governor's Php800 million loan with Landbank. I was the only one. Now we are many. The administration should hear the people's voice,” said Board Member Alma Uy-Lampasa, on her Facebook post.

Tan defended the loan application, saying that it was approved by majority of provincial legislators. The provincial government has detailed plans on how to spend the loan, she added.

Samar is one of the 10th poorest province in the country with a poverty incidence of 43.5 percent from 2006 to 2012, according to the National Anti-Poverty Commission. The poverty situation is expected to worsen after super typhoon Yolanda ravaged some parts of the province on Nov. 8, 2013. (PNA)