Cebu eyes foreign loans to fund P9-B infrastructure projects

CEBU CITY – The provincial government of Cebu is planning to approach international lending agencies such as the Asian Development Bank (ADB) to raise some P9 billion to fund major infrastructure, power and utilities projects.

Cebu Vice Governor Greg Sanchez Jr. told newsmen that they are also eyeing the P2-billion revenue surplus from its own coffers to fund a 150-kilometer transaxial highway, a wind-powered generation plant, and an integrated water supply system.

The provincial government has already released P5 million for a feasibility study for the comprehensive infrastructure development program.

"The thrust of the infrastructure program will be for rural and economic develoment," Sanchez said during a press tour hosted by the ADB.

The tour also covered the Carcar-Barili-Bato Road, part of the ADB’s P524-million Second Cebu Road project.

The transaxial road, also known as the Unity Highway, will connect all municipalities of the province of Cebu. "Development in the countryside means access to them in the fastest time and it will be the least time if our travel is uninterrupted, smooth and safe," Sanchez said.

It will connect Daanbantayan in northern Cebu to Santander in the south. It will then traverse and connect existing interior roads. The highway is estimated to cost at least P4 billion.

Utilizing the transport trunk created by the Unity Highway, an integrated water supply system will be attached to give access to fresh and clean water to the eastern portion of Cebu from the underdeveloped western portion.

It will be complemented by the development of renewable energy sources with emphasis on wind power. Wind banes and other related facilities will be erected in both coastal and mountainous areas as a cheap and alternative energy source.

"It has been successfully done in Ilocos and we want to do the same for the province of Cebu," the official said.

All projects will be under the build-operate-transfer (BOT) scheme as it would entail huge amounts of funding and technical expertise.

Local government and business officials have attested to significant gains with the ADB-funded highway that linked Santander to Cebu City.

Argao Mayor Wilfredo S. Caminero said that travel time between Argao and Cebu City was reduced from two hours and 30 minutes to just an hour and a half.

"It reduces travel time, spoilage of the farm produce, and lowered operational costs for transport operators," Caminero said. He added that a large number of Argao residents working in Cebu City has started commuting daily to the city instead of having to rent an apartment or room due to the increased acccessiblity.

Likewise, business activities increased several fold due to better infrastructure including activities related to mining, tourism and agriculture.

Jose Mari T. Bigornia, board trustee of the Cebu Chamber of Commercial Inc (CCCI), said that the establishment of the highway attracted more locators especially in the fields of tourism and information and communitions technology (ICT).

"We also expect small and medium enterprises (SME) to benefit from improved infrastructure as their operational costs will be reduced, making their products more competitive in the regional market," Bigornia added.