Unavoidable is the controversy generated by the local government of Pandan’s proposal to borrow P155 million from the Development Bank of the Philippines for the establishment of a sanitary landfill and the improvement of two water systems, along with the procurement of heavy equipment.
The fact that it is the largest ever loan sought by any of the 11 municipalities in Catanduanes ensures that it would be a divisive issue among Pandananons.
The previous record was the P120 million granted to the administration of Mayor Emeterio Tarin for the construction of the four story Viga municipal hall now under construction.
It bears pointing out that since the enactment of Republic Act 9003 or the Ecological Solid Waste Act of 2000, none of the 11 towns has ever complied with the provision that all local government units should dispose of residual waste in sanitary landfills.
During the term of then Mayor Santos Zafe, the capital town of Virac was engulfed in a similar controversy when the LGU proposed an P80 million loan for a sanitary landfill, with the proposal shelved due to the political firestorm that ensued.
Current chief executive Samuel Laynes, in his first and now his second term, has not wavered in his desire to finally operate a sanitary landfill but the local government has faced difficulty due to the absence of a suitable site that would satisfy the requirements of the Environmental Management Bureau (EMB).
Among the island’s towns, it remains in the best position to achieve the project once a site is vetted, considering that its operation of the existing controlled dumpsite in Casoocan has impressed concerned agencies and NGOs.
For its part, the Pandan LGU headed by Mayor Raul Tabirara is not in the same situation as then Virac Mayor Zafe found himself: in a bitter wrangling with opposition councilors in the Sangguniang Bayan.
In fact, as the members of the Sangguniang Bayan led by Vice Mayor Erick Rodriguez stressed during last week’s press conference, Municipal Ordinance No. 2024-03 authorizing the borrowing of the P155 million was passed by an affirmative vote of all but one member, including those not belonging to the mayor’s slate in the 2022 local elections.
This bodes well for the Tabirara administration, which could be the first town on the island in 24 years to finally establish and operate its own sanitary landfill.
Its only problem, according to supporters, is what it claims to be the incessant cackling on social media on what the commenters opine is an unnecessary expenditure that would be hard to repay.
While a finance official assured during the presscon that the LGU can pay off the loan, the concerned officials did not exactly show how.
The Tribune learned that assuming the loan is granted, the Tabirara administration will start on the next year with an initial amortization of over P5 million.
Interest on the loan totaled P88 million, bringing the total repayment required to P243 million.
An official said this is feasible, since the current Development Fund from which such payments would be charged is set at about P28 million and bound to increase in the succeeding years.
A glance at the amortization schedule showed that majority of the yearly payments are above P20 million, with the highest at P22 million plus on the sixth or seventh year.
This, one key official stated in a side interview, would still leave the local government with enough fund for other vital programs, projects and activities.
Also not elucidated was the LGU’s plan to convince nearby towns to dispose of their residual solid waste at the landfill for a fee. The mayor, however, was sure that its proposed partnership with the water district would bring in P86 million to the LGU in 30 years.
Clearly, the Tabirara administration needs to conduct an aggressive information campaign among barangay residents of the benefits of the P155 million loan and allay fears that the money would be wasted in yet another ill-conceived plan.
Once the loan is approved, it has to do all within its power to make sure the landfill and water supply projects are realized.
After all, their future in politics after 2025 will depend on whether they can deliver on their promises.