THE local government of Baguio is finalizing the acquisition of some $62.4 million worth of loans from the Asian Development Bank (ADB), amounting to some P3.7 billion pesos, for the five-year rehabilitation project of its sewerage treatment plant.
City Budget Officer lawyer Leticia O. Clemente stated that the Baguio Resilient City Tourism Project (BRCTP) will be implemented in partnership with the ADB, the State-owned Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Department of Tourism (DOT) and the local government.
The interest rate for the loan is 1.68 percent where the $61 million principal will become $71 million when repaid.
The ADB will serve as the funding agency, the TIEZA will be the executing and implementing agency for the construction of the plant, the DOT will be the implementing agency for the mandated training of tourism workers in the city and the local government will be the recipient of the projects.
According to Clemente, the five-year project will involve two years of preparation and two years of project construction.
Output 1 for the project includes a new Balili sewage treatment plant, the rehabilitated Balili sewage network and 11.3 kilometers of rehabilitated sewer lines.
Output 2 for the project is to be in the form of improved productivity of tourism workers. The project is set to aid the DOT in establishing 12 private sector-led skills training networks in accommodation, food services, farm tourism, creative services, tour operations and transportation.
The project cost for Output 1 is approximately $50.6 million or P2.8 billion while Output 2 has a total project cost of $2.3 million or P132.8 billion. The remaining funding includes projected contingencies amounting to $6.9 million or P384.1 million and financial charges during the implementation of the said project which is around $2.5 million or P144 million.
Under the agreement, the TIEZA will own the assets of the project until the city is able to reimburse the capital expenditures of the project, at which point it will be turned over to the city.
