Mayor eyes meeting with JICA, PM, emperor

CEBU, Philippines - Cebu City Mayor Michael Rama is planning to meet with the president of the Japan International Cooperation Agency to question why the city government’s balance of its loan on the South Road Properties remain at P3 billion despite its religious payment of the monthly amortization.

Rama said he will ask JICA president, Dr. Akihiko Tanaka, why the amount has not decreased since 2001.

“I want to bring and report about SRP to JICA (because) ang utang nga P3 billion nagsugod og 2001 pagbayad ‘nya karon 2014 P3 billion lang gihapon,” Rama told reporters yesterday.

Rama even plans to visit Japanese Prime Minister Shinzo Abe and Emperor Akihito to inform them about city government’s loan status.

 â€œSo that they would know because kanang SRP loan it was a loan not to oppressed a local government unit and used to deprive basic services, but it was a loan to elevate and bring better future to LGU. I need to report that to them,” he added.

 The city government pays 11 percent interest or P150 million to P200 million per annum of its P6.5 billion loan.The amortization period is until 2025.

JICA granted the loan in 2001 for the 300-hectare reclamation project which is now known as the South Road Properties. The fluctuating exchange rate is hurting the city government financially.

The city government, however, plans to restructure the loan with another bank to address the fluctuating interest.

Lawyer Jose Daluz III, the mayor’s executive assistant, explained that the plan entails a lower interest rate since the city would only be paying at least three to four percent interest rate compared to the 11 percent the city is currently paying to Land Bank of the Philippines, JICA’s conduit bank.

“It is going to be pursued but I have made directive to Daluz, Joy Pesquera, City Treasurer Diwa Cuevas and City Administrator Lucelle Mercado on things they have to do and it has to be quickly done because I am preparing for the supplemental budget,” Rama said adding that he will make an assessment and evaluation after his core group submits a report.  (FREEMAN)