Koronadal seeking P150-M loan for terminal complex

GENERAL SANTOS CITY (MindaNews/29 August)– The local government of nearby Koronadal City in South Cotabato is planning to secure a P150 million loan to fund the construction and development of its proposed integrated transport terminal complex.

Marloun Gumbao, Koronadal City treasurer, said City Mayor Peter Miguel has formally sought authority from the city council to negotiate with various banks and other financial institutions in the area for the granting of the loan in time for the targeted commencement of the project before yearend.

He said the proposed loan will mainly be utilized for the construction of the main terminal building and related structures as well as the installation of the necessary amenities within the complex.

“This will be a complete integrated transport terminal and commercial complex,” the official said.

For the proposed loan, Gumbao said in a radio interview that the local government is initially considering seeking a repayment term of 10 years, with an annual amortization of P25 million.

He said they will arrange that the loan repayments would only commence once the terminal complex begins its operations.

Gumbao expressed confidence that the local government would be able to meet the projected loan repayments since the terminal complex will be operating as an economic enterprise.

“The good thing about the terminal is the fact that it is also an income-generating project. So we’re securing a loan to fund a business venture,” he said.

Based on the feasibility study prepared by the local government, Gumbao said the proposed facility is projected to generate an annual income of around P13.2 million from the terminal fees alone.

He said they also expect additional revenues of around P1.7 million from the rentals or leases of its commercial stalls.

“Our total revenues could reach as high as P15 million a year, so we will only need to fill in P10 million more for the loan repayment,” Gumbao said.

The city government earlier acquired a 5.9-hectare lot worth P40 million in Purok Yellow Bell, Barangay Sta. Cruz here for the proposed terminal complex’s site.

The city government approved last year the appropriation for the acquisition of the city terminal’s site through a P60-million supplemental budget, which was sourced from the city’s unutilized appropriation for various projects from 2001 to 2009.

Part of such appropriation was set aside by the local government for the purchase of a 10-hectare property in Barangay Paraiso that it plans to develop as a sanitary landfill.

Based on the local government’s initial plan, the proposed integrated terminal’s main building will cover two hectares and the rest of the site will serve as buffer area or spot for future developments.

It will adopt the “green” concept in terms of architecture and facilities, specifically the use of natural ventilation, natural lighting (skylight) and energy-efficient light-emitting diode or LED lights.

The facility will also provide adequate green open spaces and the design would ensure the preservation and integration of the land’s existing natural water bodies and features. (Allen V. Estabillo/MindaNews)