BAGUIO City officials have endorsed to the National Economic Development Authority (NEDA) a $60-million loan that will fund the Baguio Resilient City Tourism Project (BRCTP).
Under Resolution No. 480, series of 2021, signed by Mayor Benjamin Magalong, the city council expressed support for the BRCTP, citing four major river systems in the city – the Sagudin-Balili- Bued, Asin-Gallano and Albalanga – being found by the Department of Environment and Natural Resources (DENR) to be far beyond set water standards due to wastewater discharge.
The loan will be subject to terms and conditions that will be in the memorandum of agreement (MOA) between the city and the State-owned Tourism Infrastructure and Enterprise Zone Authority (TIEZA), which will be interfacing with the Asian Development Bank (ADB), the source of the loan itself.
The loan, once approved and taken out by the TIEZA, will be used to fund the BRCTP, which intends to upgrade and expand the city’s sewerage system, as well as ensure funding and support for the city’s sanitation projects, and improve the city’s waterways and rivers.
A portion of the loan will also be used for the funding of some local tourism projects that have environmental improvement aspects.
Once taken out, the loan will be paid over a 20 year period starting in 2031.
TIEZA will be the entity taking the loan from the ADB, which will then be downloaded to Baguio’s local government. Repayment will also go through the TIEZA from the city government.
However, the NEDA Investment Coordinating Council will have to approve the loan before it can be taken out.
The city is currently slated to be penalized for continuing violation of DENR water quality guidelines.