Bukidnon’s debt servicing: P405.4M in 9 years

MALAYBALAY CITY (MindaNews/17 June) — The Bukidnon provincial government has paid a total of P405.383 million for loans mostly for its major hospitals since 2004, according to the latest Statement of Debt Service of the province, dated March 31 this year.

This is equivalent to an average of P45 million a year or slightly higher than the province’s projected tax revenues for 2013 at P44.554 million. It also expects to earn P26.885 million in “nontax revenues” from regulatory and license fees.

For 2013, Bukidnon has an internal revenue allotment (IRA) of P1.409 billion.

In 2012, according to the annual budget, the provincial government allotted about P67 million for debt servicing.

Of the total loan payments in nine years, P220.445 million or 54.38 percent went to payment for principal and P184.937 million or 45.62 percent to interest payments.

The total loan principal was P369.132 million, all from Land Bank of the Philippines. As of this year, the provincial government has a total of P148.687 million in loans.

Payment for the loan with the longest term – 15 years – will end in 2019.

P213.221 million or 57.76 percent of the loan was used to finance the Bukidnon Provincial Medical Center in Malaybalay City (P109.041 million), the Bukidnon Provincial Hospital in Maramag (P62.727 million) and another provincial hospital in Manolo Fortich (P41.453 million).

Another loan for the hospitals, P81.003 million, also from LBP, was for “hospital equipment.” The five-year loan acquired in 2008 will mature in October this year.

The province also incurred a seven-year loan of P56.9 million from LBP under the IRA Miracle 2 program.

The loan, according to an official source who asked not to be named, was obtained because of an IRA differential. The source said the Department of Budget and Management allowed Bukidnon to acquire a loan using the additional IRA released gradually as guarantee.

Another loan, P18 million, was acquired for the Talakag Water System in 2007. It will mature in 2017.

Except for the last loan, the rest was paid with an interest rate of 10 to 10.5 per cent per annum.

For next year, the report cited a total of P38.327 million due for loans with about 30 percent or P11.453 million for interest payments alone. (Walter I. Balane/MindaNews)