Land Bank approves loan for Koronadal transport terminal complex

KORONADAL CITY (MindaNews / 29 April) – The Land Bank of the Philippines (LBP) has approved the loan application of the city government here for the construction and development of the city’s P230-million modern integrated transport terminal complex.

Mayor Peter Miguel said Tuesday they received a notice from the LBP’s monetary board endorsing the financing of the city’s transport terminal project and setting a maximum loanable amount of P560 million for such purpose.

But he said the local government has only sought for a P150-million loan or P80 million short of the project’s estimated cost.

“The project’s development was set on a phased basis so we decided to lower our loan to P150 million,” the mayor said in a radio interview.

Miguel earlier obtained authority from the city council to negotiate a loan with the LBP for the construction of the terminal complex in Purok Yellow Bell, Barangay Sta. Cruz.

The city government acquired last year a 5.9-hectare lot worth P40 million for the proposed transport terminal project’s site.

Miguel said the decision to reduce the loan amount was also based on the city government’s financial capacity, especially in its repayment.

He said they don’t want the local government to get buried in loans and eventually forced to sacrifice its priority programs and services.

With the P150-million loan, he said the project’s original plan and design will not be implemented fully or to the detail but assured that such amount is enough for a “fully functional terminal complex.”

“We’re now processing the release of the loan to facilitate the project’s implementation,” Miguel said.

The mayor said the LBP loan will specifically be utilized to fund the construction of the main terminal building and related structures as well as the installation of the necessary amenities within the complex.

Based on a feasibility study prepared by the local government, the transport terminal complex will be operated as an economic enterprise.

The facility is projected to generate an annual income of around P13.2 million from the terminal fees alone.

It foresees additional revenues of around P1.7 million a year from the rentals or leases of its commercial stalls.

The proposed integrated terminal’s main building was designed to 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.