Srp loan: City to pay JBIC P198M

CEBU, Philippines - The Cebu City government is set to pay around P198 million to the Japan International Cooperation Agency for the loan it took in developing the 300-hectare South Road Properties.

City Treasurer Diwa Cuevas said they are finalizing all the needed documents to pay the amortization on August 19. The city pays for the loan every February and August of each year until 2025.

In a billing statement sent by the Land Bank of the Philippines, which serves as conduit bank for the loan, the city needs to pay 458,940,928 yen (P197.9 million), which is the amount computed for the period  February 20, 2013 to August 19, 2014 , before August 20.

LBP Assistant Vice-President Elsie Fe Tagupa said the amount represents the principal loan (¥299,800,000) and interest of ¥159,140,928.

The payment is for the 19th amortization of the 12.315 billion yen (P5.3 billion) loan, from the Japan Bank for International Cooperation  when the Cebu City Government developed the south properties in 1997.  (The figures were computed based on yesterday’s exchange rate of P44 to one US dollar and 0.0098 US dollar to one yen)

Cuevas said the borrowed amount has to go through the process of conversion from yen to dollar then dollar to peso, which is the currency the city would use in paying the amortization.

Cuevas said the city will be utilizing the amortization payments of SRP locators SM Prime Holdings amounting to P97 million for the third quarter of the year and Filinvest Land Incorporated’s P224.4-million amortization for the 10-hectare Pond F at the SRP.

Of the P5.3 billion it incurred in the development of the SRP, which is a prime property set on a reclaimed land along the city’s east coast, the city still owes JICA P3.2 billion, which must be paid off by August 15, 2025, or 11 years from now.

Of the P3.2 billion, interest payment totals around P1.15 billion.

Last February 20, the city paid JBIC P218 million in amortization for the SRP loan, with funds taken from the business permit collection amounting to P750 to P800 million.  (FREEMAN)