Cebu Town Seeks PHP130M LBP Loan For New Market, Heavy Equipment

The Municipal Government of Tuburan in northwestern Cebu is applying for a PHP130-million loan with Land Bank of the Philippines (LBP) for the construction of a new public market and to buy heavy equipment.

Ordinance 96 enacted under Resolution 2016-02 of the Tuburan Municipal Council authorized the loan application of PHP80 million for the construction of the new public market.

Ordinance 97 enacted under Resolution 2016-03 authorized the proposed loan of PHP50 million to buy heavy equipment.

Tuburan Mayor Democrito “Aljun” Diamante said this loan is under the Municipal Development Fund Office, or Municipyo Fund, from the Department of Finance (DOF).

“It has a grace period of three years and with a very low interest of three percent per year,” Diamante said.

He said the new public market will rise on the same location of the existing dilapidated market.

He said that with the rising prices of construction materials, constructing a new market 10 years from now may cost them or the municipal government PHP200 million.

Diamante said the new market is expected to increase Tuburan’s share of the Internal Revenue Allotment (IRA), which is based on income, population and land area.

“With a modern and clean market, we can invite more micro, small and medium enterprises (MSMEs) to come. We are confident we can increase our income. And the most important is, a market is a self-liquidating project so that its income can be used to pay the loan,” Diamante said.Diamante said the heavy will be used to open more roads in remote barangays and widen existing roads for the convenience of all motorists and commuters. (PNA) LAP/EB/SSC