BCWD, DBP ink contract for P550-M term loan facility
Butuan City (9 November) -- Butuan City Water District (BCWD) and Development Bank of the Philippines (DBP) inked contract for the 550 million pesos Term Loan Facility on Oct. 26, 2010 in a simple yet momentous ceremony at the Almont Hotel's Inland Resort.
DBP's Mervin G. Garsuta, in his welcome address, said the signing of the contract should have been done few months earlier, but approval by the DBP Board of Trustees was delayed for a reason and purpose.
"Prayers, hard work and persistence were the key factors in the success we are having now.
"We are here gathered tonight to forge our partnership and commitment for the development of our country and Butuan City which will benefit about 300,000 residents of the city," Garsuta said.
DBP Northeastern Mindanao's biggest account so far, the 550 million pesos loan will be used to buyout BCWD's existing loan with Local Water Utilities Administration (LWUA).
DBP's interest is much lower than that of LWUA which will enable BCWD to save millions of pesos that can be used in the further development of its system.
BCWD Board of Directors chairman Juanito A. Lao was happy that DBP finally granted the 550 million pesos loan after months of processing.
"The granting of the 550 million pesos loan to BCWD will improve its financial capacity because with only 10% interest, BCWD will save some two million pesos a month; and I learned that if BCWD will pay very well, the DBP will reduce the interest," Chairman Lao said.
BCWD interim general manager (IGM) Alfredo G. Bayanin disclosed that the refinancing of BCWD's LWUA loan was an idea of general manager (GM) Anselmo L. Sang Tian. However, LWUA then did not allow such scheme because it had much money. It is only now that the LWUA granted the request of BCWD for refinancing because it needs money for its huge commitment to other water districts.
IGM Bayanin took the opportunity to explain for having a GM and an IGM in the water district. He said that it was just unfortunate that BCWD had an external problem which compelled LWUA to appoint an IGM.
He also bade farewell to the water district because LWUA pulled him out from the water district; and thanked the BCWD family for the wholehearted support extended to him during his stint as temporary general manager. (BCWD/PIA-Caraga) [top]