SP grants Mayor Uy authority to contract loan for new City Hall site

The construction of the new Cagayan de Oro Government Center and Eco-Tourism Site will soon materialize in a property within the vicinity of Upper Carmen, near the Eco-Park.

This, after the 20th City Council, in its regular session presided by Vice Mayor Bebot Rodriguez, enacted an ordinance, authorizing City Mayor Rolando A. Uy to borrow and contract a loan with the Land Bank of the Philippines (LBP) in the total amount of P2.7 billion for the acquisition of land (P1.5 billion) with a total area of 229,043 square meters, and for the construction of the New City Hall Complex (P920 million) and Land Development (P250 million).

It was learned that the City Local Finance Committee (LFC), through Resolution No. 200-2023, unanimously reiterated its request for the City Council’s approval of the said loan to fund the identified priority projects.

The Cagayan de Oro Government Center and Eco-Tourism Site is one of the priority programs for the ensuing year of the City Mayor.

The City Council earlier adopted Resolution No. 14717-2023, authorizing the City Mayor to negotiate with any reputable government banking institution for a loan with terms advantageous to the city government.

According to the LFC, the proposed loan amount of P2.7 billion is within the ceiling of the City Government borrowing as shown in the Certificate of Net Debt Service Ceiling (NDSC). The appropriation for debt service is well within the 20% of its annual regular income as shown in the projected amortization schedule against estimated 20% Development Fund of the City, the resolution further stated.

The transfer of City Hall was initiated to bring together local and national government offices in the city into one compound as proposed by Councilor Edgar S. Cabanlas a few months back. He also said the proposal will ease traffic congestion in downtown area and partially address the issue of inadequate parking spaces at City Hall.

According to Mayor Uy, the proposal was also met with a positive response by Senator Juan Miguel Zubiri who committed to work for an initial fund of P500 million from the national government on the condition that the city government provides a suitable area.