LandBank funds Manila’s services buildup program

Over the years, (LBP) has worked closely with local government units nationwide and has remained the biggest provider of financial assistance and development financing to the sector.

State-owned LandBank is ramping up support for progressive local government units like Manila whose chief executive, the popular Isko Moreno, has plans boosting the delivery of services for its people. roman prospero @tribunephl_RRP

The Land Bank of the Philippines (LandBank) has extended the City of Manila a P10 billion credit line that will fund the city’s health and educational programs.

“Complementing his vigorous campaign to clean-up the streets of Manila from garbage and eyesores, Manila Mayor “Isko” Moreno is also focusing on upgrading the city’s health, educational, tourism and public services facilities,” the state-owned lender said.

Its president and CEO, Cecilia Borromeo, said the transaction affirms LandBank’s commitment to support local government units who are vital links between the national government (NG) and their localities.

“Over the years, (LBP) has worked closely with local government units (LGU) nationwide and has remained the biggest provider of financial assistance and development financing to the sector because we believe that local government is the biggest, if not the most integral, link between the (NG) and their respective localities,” Borromeo said.

Signed on 11 November 2019, the P10 billion agreement between LandBank and the City of Manila was activated under the bank’s Omnibus Term Loan Facility (OTLF).

The bank’s OTLF enables qualified provinces and other LGU to avail of loans for projects listed in their approved local development plan or annual investment program, which eliminates the inconvenience and transaction cost of securing a loan approval for each and every LGU project.

According to the lender, the P10 billion loan will fund the construction and renovation of the Ospital ng Maynila, the Pamantasan ng Lungsod ng Maynila School of Medicine Building.

It will also underwrite the construction of the new City Hall building and the Manila Sky deck, among other proposed projects. The rehabilitation of the closed Manila Zoo and the development of the Pandacan Depot into a commercial district are among the pipelined projects.