Governor Roel Degamo is confident that the 20 percent Economic Development Fund will not be exhausted even if they will get the P350 million loan for the Central Block building of the Negros Oriental Provincial Hospital.
The governor made the proposal to the Provincial Board early this week asking for an authority to avail of a loan for the construction of the NOPH central block building.
The Negros Oriental Provincial Hospital urgently needs a new operating room after the building has been declared as dangerous and unsafe by the Department of Public Works and Highways (DPWH) because of big cracks on it.
According to Board Member Liland Estacion, the Provincial Health Board has agreed to wait for the P100 million grant promised by the Department of Health. The province will still have to avail of the loan on a phase-by-phase basis in order for the province not to incur too much loan payments.
Dr. Estacion said they are afraid that if they will allow the P350 million loan, the province will be paying huge loan amortization every year that will exhaust the 20 percent EDF.
At present, the P51 million budget is being used in the construction of the footing and foundation of the building.
The P100 million grant promised by the DOH will still be implemented by 2013 following the availability of funds from the national government.
Governor Degamo clarified that he will re-submit the proposal to the Provincial Board that will contain all needed details and computations off the annual loan amortization. He said the province will have to get the loan by January 2012 because the project must take off at least by second quarter of 2012.
The governor explained that the money will only earn interest when it will be withdrawn from the bank since the project will be implemented in a phase-by-phase basis.
Provincial Planning and Development Officer Joy Gongob said the province will have to pay the loan amortization of P80 million for five years including interest. The province has a total of P215 million for its 20 percent Economic Development Fund.
The province is still paying P19 million loan amortization for the previous loans that were incurred for the construction of the Negros Oriental Convention Center and the purchase of heavy equipment.
Gongob added part of the P19 million loan amortization will end in 2013 and 2015 which would give enough time for the province to pay the loan for the central block building. (PNA/JFP/Maricar Aranas)
