The city government of Puerto Princesa is seeking a fresh P3-billion loan package to bankroll a new wave of large-scale infrastructure projects, including a proposed 10,000-seat convention center, road networks, drainage systems, and parking buildings.
The Sangguniang Panlungsod on Monday, May 25, approved a resolution authorizing Mayor Lucilo Bayron to negotiate loan terms with the Land Bank of the Philippines and Development Bank of the Philippines.
The proposed financing forms part of the city government’s infrastructure expansion program under Supplemental Investment Program No. 2 for fiscal year 2026, which carries a total project cost of P4.49 billion.
In his request to the city council, Bayron said the planned loan is intended to “sustain our city’s developmental momentum and address the immediate needs of our constituents.”
City Budget Officer Regina Cantillo said the local government’s available funds are insufficient to fully finance all projects listed under the supplemental investment plan, prompting the city to seek external financing.
She clarified that while the total infrastructure package amounts to over P4 billion, only P3 billion would be sourced through credit financing because several projects already have existing local funding.
Among the priority projects identified for possible loan funding are drainage improvements, road construction and rehabilitation, steel parking buildings at City Hall and the Edward S. Hagedorn Coliseum, and the planned convention center in Barangay Sta. Monica.
Cantillo said the city government plans to secure the loan through an open credit line and omnibus loan agreement, where funds will be released only when specific projects are implemented.
She added that only the amount released would incur interest, currently estimated at 4 percent annually.
The city budget chief also assured the council that Puerto Princesa remains within the allowable debt servicing threshold for local government units.
“Per our computation, we still have healthy headroom for additional loan. Hindi pa tayo nag-exceed sa 20 percent debt ceiling. Nasa about 10 percent pa lang,” Cantillo said.
According to Cantillo, the city currently allocates P241 million annually for the amortization of nearly P1 billion in existing loans obtained over the past three years.
“So, we have to pay P241 million ngayon para sa existing loan and we are still allowed up to P800 million for annual amortization,” she added.
She also noted that, based on computations by the Bureau of Local Government Finance, Puerto Princesa could still qualify for up to P7 billion in additional borrowing capacity.
