Danao targets to rake in P10 million from terminal toll and receipts

CEBU, Philippines - The plan to create a satellite public transport terminal in Danao City, in the northern part of Cebu, is now underway. The Danao City Terminal Board targets to earn P10 million gross revenues from terminal toll and receipts.

The plan aims to increase the capability of the city to earn from its entrepreneurial projects at the same time lessen its dependence on the Internal Revenue Allocation (IRA).

 In an interview with Danao City administrator Oscar “Boying” Rodriguez, he said that the local government unit (LGU) is now looking at converting a vacant lot fronting Mitsumi for a smaller-scale terminal.

 The creation of the first Public Transport Terminal in the City has provided the City with significant revenue for the past two years, said Rodriguez. In 2008, the terminal generated a total of P8.8 million in revenues. It increased by 10 percent the following year.

 Because of this, the City has observed a reducing dependency of its IRA budget by an average of two percent a year. At present, Danao City is receiving P24 million a year from IRA.

 Rodriguez said that because of the successful turnout of its 1.1 hectare government-owned and managed terminal, the City is now planning to build a satellite public transport terminal, primarily to accommodate the 18 thousand employees at Mitsumi.

 However, the City government of Danao still has to determine the total budget of the project, and also exploring possibilities of financial access.

 The first Public Transport Terminal was constructed through the help of the German government via the Kfw-LGU Investment Program.

 The Danao City government was able to get a funding of P52.59 million channeled by the German government through Land Bank of the Philippines (LBP), and payable in the next 15 years with minimal interest rate.

 Rodriguez hopes that the second public transport terminal will be able to get similar arrangement of financial assistance.

 Danao City which thrives as a manufacturing hub in the northern part of Cebu, is starting to initiate its entrepreneurial projects in order to be an independent LGU in the next few years.

 The City’s effort to reduce the bureaucracy process in applying business permit has also benefited the City’s increased of number of businesses opened in the last few years.

 Again, through the help of German Technical Development (GTZ) through the Private Sector Promotion Program (PSP) and the Decentralization Program (PP), the City had been able to reduce its business permit processing from 16 steps to five steps.

 Instead of average 36 hours processing time, availing of business permit in the City can be completed in one hour.

 In the first nine months of this year, Danao City’s tax collection from businesses increased by 6.3 percent from P13.4 million in 2009, to P14.3 million as of September of this year.

 Rodriguez said that the LGU of Danao is aiming to build more revenue generating projects, in order to further diminish its dependency of IRA in the future.

 Meanwhile, the Board of Investments (BOI) earlier announced that it has created a dedicated department and hired pool of experts to help LGUs advance their economic activities and maximize their potentials.

According to BOI governor Oliver Butalid, the LGUs now will be coached in how to be “captains of industries.”