P400M loan okayed for Mandaue market

CEBU, Philippines – Mandaue City's new market building, which will cost P400 million, is set to rise next year after the Development Bank of the Philippines (DBP) has approved the city's loan.

"We have already an approval of the loan by DBP. We're just waiting for the certification of borrowing capacity nga kaya na sa Mandaue makabayad (for) 25 years," said City Treasurer Regal Oliva.

Oliva said the city actually applied for a P600 million from DBP this year, with the P200 million as "standby funds in case we need additional money" for the project.

It is the Department of Finance which issues the certification of the city's borrowing capacity. Oliva said he is confident they will get such certification as this is not the first loan they made to DBP or any major banks.

He said the old market building at the back of the city sports complex was also funded through a bank loan when it was constructed in 2004 under the leadership of then mayor Thadeo Ouano, who is now a Provincial Board member.

The building, which was damaged by the 7.2-magnitude earthquake on October 15, 2013, was already abandoned, but despite that, the city is still paying the loan since it still has a balance of P180 million.

It was learned that after the earthquake, some of the 1,200 market vendors also lost their livelihood as they no longer had a place to display their goods and they had been waiting until now for the construction of a new market so they can again go back to their business.

At present, some market vendors are reportedly selling their stuffs at an open space in between the sports complex and the market which was damaged by earthquake.

Some are also illegally selling their stuffs at the dilapidated old market in Centro and have always been the subject of apprehensions by the city demolition team.

The new market will be erected at the back of the St. Joseph Shrine where the old public market once stood.

The loan is incorporated in the city's P2.7-billion annual budget for next year. (FREEMAN)