P3-billion loan to pump-prime Davao economy

-Jacinto presents plan to Chamber members

THE P3 billion loan of the city government from the Land Bank of the Philippines is intended to pump-prime the city’s economy. However, it is not only designed to cushion the impact of the expected economic crisis, it is also to prepare the city for the expected upturn of the economy later.
This, in a nutshell, was the explanation of City Planning and Development coordinator Mario Luis J. Jacinto of the city government’s plan to borrow from Land Bank in his presentation before the general membership meeting of the Davao City Chamber of Commerce and Industry, Inc. Friday night. 
He said the major items lined up for the P2.8 billion LBP loan are:  new infrastructure projects—P841 million; roads and maintenance projects—P754.4 million; phase 3 of the traffic signalization project—P705 million; crematorium and new city cemetery—P50 million; shelter program—P100 million and environmental management program—P395 million.
It is estimated that with 30 percent labor component, these projects will generate 923, 790 days of work.
“At P270 per day for the ordinary worker, this will translate to 2,962 employed persons over 12 months from start of  implementation of the projects,” he said.
Jacinto presented what he called “the pump priming wheel” focusing on the priorities of the program, among them the need to increase food production activities, sustaining livelihood generation, increasing infrastructure and development projects “basically for its multiplier effect and the impact on the local economy, on business, on people, on jobs,” and improving human resources for the city to remain competitive.
“The money that will go to the hands of the people will not only upgrade their capacity but also give a multiplier effect to the community they live in as well as the entire local economy,” he said.
He added that the program is “based on the assumptions that, among others, the magnitude of the impact of the global economic crisis on the city and its people remains uncertain and difficult to judge.”
The program is also intended to continue ensuring peace and security of the city, especially in times of crisis, and promote an environment conducive to business and development.
Since women and children are the most vulnerable sectors, particularly during “these desperate times,” Jacinto said the maternal health and child care programs shall be further intensified and strengthened.
“We have to optimize resources and position the city to take advantage of opportunities in the expected upturn of the economy,” he said. Jacinto admitted that in planning the LBP loan, the income of the city government from the revised Tax Code was factored in.