NHA reviews P78M loan of city gov’t

CEBU, Philippines - The National Housing Authority Board is now evaluating the loan application of the Cebu City Government amounting to P78 million for its medium rise housing project.

NHA-7 Regional Director Gavino Figuracion disclosed the city had already submitted the requirements such as the project proposal, feasibility study and the recovery scheme.

“Right now we are on the process of evaluation we have already submitted this to Manila office for further evaluation,” said Figuracion at the 888 News Forum at Marco Polo Plaza recently.

Figuracion said the NHA Board may discuss the matter within the month.

Among the considerations Figuracion said they will look into is whether the full amount will be transferred directly to the city government or will the NHA do it by progress billing.

He cited that in other projects under the Poverty Alleviation Fund 3, NHA usually transfers fund directly to the local government unit or they do it by progress billing.

“Based on this proposal for this project, they will be the one to bid this out to private developer who will bill the LGU and the LGU will request for the release of the cost of accomplishment of the developer,” Figuracion said.

The NHA offered the loan scheme to the city government in 1998 during the time of former mayor Tomas Osmeña who reportedly declined due to other priorities prompting the deferment of the allocation.

The P78 million is the balance from the P100 million National Government Subsidy Releases under the PAF 3 of NHA which was made available to the LGU in 1998 at six percent interest rate per annum.

“During the time of Osmeña, they don’t want to have a loan to NHA since they have still other loans to be paid to other agencies like JICA,” Figuracion said.

When Mayor Michael Rama took over the City Hall, he pursued the plan of having two medium rise housing units to cater those families along danger areas, policy that should be followed for the release of the fund.

The location is in Lorega-San Miguel where each building will compose of around 80 units.

The beneficiaries of the project have the option to rent or purchase their unit on installment basis. —/ATO (FREEMAN)