Members of the Baguio City Council, during the regular session on February 26, 2024, sought clarification regarding the executive department’s plan to secure a loan of 49.5 million USD to fund the proposed Baguio Resilient Tourism Project.
Councilors Leandro Yangot Jr. and Peter Fianza inquired about the loan mechanics, duration, and commitments required from the city government.
Yangot expressed his concerns about the possible implications of the loan on the future of Baguio City.
“I’m asking because this will be the first time the City Government of Baguio is considering a loan, and to my mind, it feels like mortgaging Baguio’s future by seeking such a significant amount from external sources,” Yangot stated.
Fianza asked whether the loan would be taken out by the city or handled by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to clarify which entity is responsible for managing the loans and its terms and conditions.
Fianza also said that approval of the city council is necessary before incorporating loan amounts into the city’s projects. He also stressed the importance of transparency and accountability in financial matters. He said that significant financial decisions, such as taking out loans, should be subject to council deliberation and approval.
Arch. Donna Tabangin, City Planning and Sustainable Development Coordinator, said the proposal for the loan was initially presented to the City Development Council (CDC). It was earmarked for the implementation of the Baguio Resilient Program, also known as the city’s sanitation program.
However, specific details regarding the mechanics of the loan, including its duration, terms, and conditions, were not fully elaborated during the session as City Budget Officer Leticia Clemente, who was responsible for presenting the details of the proposed loan, was unavailable during the session.
City Administrator Bonifacio Dela Pena said there is a new development regarding the loan amount but did not provide specific details about the nature of the development or the loan itself. He said that during a dinner with the Sister Cities and the Chief Executive Officer of TIEZA, some discussions regarding the loan took place. He deferred further explanation about the loan, suggesting that Mayor Benjamin Magalong should reveal any changes regarding the funding during the subsequent discussions between the executive and legislative departments.
Dela Pena said the loan is seen as a “social responsibility” of the city government towards its constituents. He said the sanitation and sewerage problem in the city is a serious matter that requires immediate attention and significant resources to resolve.
The Baguio Resilient Project, as stated in CDC Resolution Numbered 2024-01, is anchored on the findings of the Department of Environment and Natural Resources-Environment Management Bureau (DENR-EMB)8 of severely degraded water quality in the city’s rivers, notably the exceptionally high levels of fecal coliform in both the Balili and Bued Rivers.
According to the CDC resolution, funding for the project will be secured through a loan from the Asian Development Bank (ADB) by the state-run TIEZA to ensure that sufficient financial resources are available. **Jordan G. Habbiling
