Province to buy heavy equipment

CEBU, Philippines - The Province of Cebu will purchase brand new heavy equipment not for the use of the Provincial Engineering Office, but to be loaned to local government units.

Cebu Governor Gwendolyn Garcia met with members of the Cebu Provincial Board and discussed how the surplus funds of the Province can earn more than the interest offered by banks for deposits.

Garcia said that cash deposits in the bank could only earn as much as three percent.

There was no amount revealed yet for the matter but one option is to build up the equipment force of the local government units by allowing them to loan for brand new heavy equipment so they would be capable of maintaining their own barangay and municipal roads.

Garcia explained that LGUs have direct contact with their barangays and they can easily monitor the drivers and personnel manning the heavy equipment.

During the administration of then governor and now Deputy House Speaker Pablo Garcia, the Province maintained 13 Engineering Task Forces deployed in the entire province.

When Garcia succeeded his father, she scrapped the task forces and sold the heavy equipment to interested LGUs at easy payment scheme.

Garcia said that LGUs could avail of lower interest rates if they loan the heavy equipment to be purchased by the province than if they avail of loan in a bank.

The equipment - dumptrucks, payloaders, graders and road rollers, should be brand new for longer life, said Garcia.

She added that the Province can impose as much as eight percent per annum to LGUs.

However, they have yet to formulate the guidelines after the plan was presented to PB members yesterday. — (FREEMAN)