PALAYAN CITY – Allies of Nueva Ecija Gov. Aurelio Umali yesterday defended him from criticisms over the provincial government’s application for a P1-billion credit facility with a local bank.
Vice Gov. Jose Gay Padiernos told journalists that the P1-billion Omnibus Credit Facility (OCF) from the Development Bank of the Philippines will be used to bankroll flagship and big-ticket projects of the provincial government, including a P100-million world-class water sports complex and theme park, sub-station, mango processing plant, and cold storage facility among others.
He said the loan is “no big deal” as there are other provincial governments that incur even “bigger, gargantuan loans,” citing Bulacan which applied for a P2.1-billion loan.
Padiernos was reacting to concerns raised regarding the loan package, which some local observers pointed out, could plunge the province into financial problems. This on top of the P280-million loan it incurred for the construction of 325 additional classrooms.
Earlier, the SP passed a resolution giving Umali the authority to negotiate and secure an OCF worth P1 billion to finance “various infrastructure and development projects” in the province.
The Board of the Directors of the DBP subsequently approved the loan facility which has a maximum 9 percent interest per annum payable for 15 years.
Padiernos said the loan package had undergone thorough scrutiny by the 14-man sangguniang panlalawigan.
“We don’t just borrow loans. We study it very carefully before we approve it,” he said.
With regards to the P280-million loan, he said the resolution granted to Umali only ratified the loan agreement the provincial government entered into with the DBP which was not approved during his first term due to differences with the previous SP.
He said the Umali administration is acquiring loans because it has shown its solid credit rating, having even paid P1.1 billion in loans during the previous administration.
“To me personally, being a businessman by profession, the mere fact that you are granted loans only means you are bankable,” he said.
Senior Board Member Estrellita Suansing also defended the loan facility, saying that “with the SP providing the necessary checks and balance, the loans would be judiciously spent.”
“I can assure you we won’t be swimming in loans. When there are loans, for sure there will be projects,” she said.
Suangsing cited as an example the proposed Aulo water sports complex and theme park, which she said would even be an improved version of the world-famous CamSur water sports complex and a similar tourist facility in Clark.
She added that the project will trigger a tourism boom in the province and boost the local economy.
Padiernos added that the provincial government is not solely relying on loans to bankroll its projects. He said the Umali administration was able to secure P200 million worth of grant from the Agencia Espanola de Cooperacion International of the Spanish government for disaster risk reduction projects.
