P8.5 B City Hall loan not cash for mayor to withdraw — Pascual

The proposed P8.5 Billion financing for the Cagayan de Oro Government Complex does not mean Mayor Rolando “Klarex” Uy can withdraw the funds from a bank, City Councilor Juancho Pascual clarified.

Pascual, chairperson of the committee on agriculture, fisheries, and aquatic resources, said the resolution only authorizes Mayor Uy to negotiate with financial institutions and explore available financing options for the proposed government complex.

“It (is) not a blank check for ₱8.5 billion,” Pascual said, noting that the city’s financial capacity and the terms of any potential financing would still have to be evaluated.

He said financial institutions have their own approval processes and requirements, including assessments of interest rates, payment terms, repayment schedules, and other conditions.

Pascual also emphasized that any financing arrangement must comply with applicable legal and financial safeguards.

The proposed government complex, based on the feasibility study presented to the City Council, is envisioned to consolidate government offices and improve public service delivery through integrated and digitalized services, adequate transaction areas, improved accessibility, parking and traffic circulation, disaster-resilient facilities, green spaces, and provisions for future expansion.

The proposed site covers around 22.9 hectares and is intended to accommodate the city’s long-term growth.

However, Pascual acknowledged concerns over the project’s estimated cost, saying questions must still be considered regarding the amount to be borrowed, interest rate, repayment period, annual debt payments, and the city’s existing financial obligations.

He said the project’s potential impact on funding for other priorities, including hospitals, roads, agriculture, social services, and disaster response, must also be considered.

While supporting the vision of a government center suited to a growing metropolitan city, Pascual stressed that the project must be affordable, transparent, properly phased, and financially responsible. (PGU/SP)