By Rjay Zuriaga Castor
Iloilo City Mayor Jerry Treñas clarified that the various loans and projects recently initiated by the city government are not intended to boost his administration’s legacy ahead of the upcoming 2025 midterm elections.
“When it’s close to election time, there are always a lot of issues,” Treñas said, responding to public comments and concerns over the substantial loans incurred by the city government.
Treñas recently announced that the city has secured an additional P300 million loan from the Development Bank of the Philippines (DBP) to complete ongoing renovations of three major public markets.
The funds for the second phase of improvements for these markets were allocated as follows: P100 million for the Jaro Big Market, P80 million for the La Paz Public Market, and P120 million for the Arevalo Public Market.
The loan carries an interest rate of 4 percent and will be payable over 15 years.
“We are having the markets constructed, and it’s not because of the election. We know there’s still some work left to be done,” he explained.
The improvements will include painting walls, electrical wiring, plumbing, and the installation of windows and doors—necessary steps to prepare the markets for occupancy and full use.
“The work on our markets is on schedule, and we aim to finish by December. That’s why we’re hurrying because we’re also training the vendors,” he added.
During consecutive visits to the three markets in May and June this year, Treñas said the markets are expected to be completed by December.
This new loan is in addition to a previous P1.75 billion loan from DBP to fund the construction and improvement of the three markets.
In addition to the market-related loan, the city has also secured P180 million for the construction of the Iloilo Slaughterhouse and P200 million for the procurement of land for the government’s housing program.
Despite these loans, the City Budget Office reported that the city’s debt servicing currently stands at only 6.75 percent, significantly below the 20 percent ceiling mandated by law.
Treñas also noted that the loan is advantageous for the city because its interest rate is lower than the national inflation rate, which is currently at 4.4 percent.
