The town of Aroroy, whose coffers is supposed to be full because of its rich gold and other minerals mine operation, will secure a loan of P45 million to finance a housing project and acquire heavy equipment.
According to Mayor Enrico Capinig, the loan proceeds that will be sourced from a bank will be earmarked to finance Aroroy’s housing project and acquisition of heavy equipment.
The municipal board (Sangguninang Bayan) passed an ordinance earlier on June 2nd which authorized sourcing of the loan.
The loan will be guaranteed by the Municipal Development Fund office of the Department of Finance.
The housing units will be constructed in an existing housing site of the town with an area of 21 hectares. The project will cost Php 7 million but no details as to how many units will be targeted for construction.
The heavy equipment, costing P38 million, will be used for the development of controlled garbage dump site, development of housing site and construction of affordable housing units, and opening and development of farm-to-market roads. (No detail(s) gathered yet on what kind of heavy equipment the local government has approved to purchase.
The loan will have an interest rate of 6.5 percent with a grace period of two years. Aroroy will assign 20 percent of its internal revenue allotment for the loan amortization. (from PNA report)