ORDINANCE NO: 2018-397
Sponsored by: Honorable Adriano B. Durano III
"AN ORDINANCE APPROVING AND RATIFYING THE LOAN AGREEMENT AND THE DEED OF ASSIGNMENT RELATED THERETO SIGNED AND EXECUTED BETWEEN THE CITY GOVERNMENT OF PAGADIAN, ZAMBOANGA DEL SUR, AND THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) WITH ALL THE TERMS AND CONDITIONS THERETO"
WHEREAS, pursuant to City Ordinance No. 2017-393, entitled: "An Ordinance Authorizing the Borrowing of the City of Pagadian, Province of Zamboanga Del Sur with the Development Bank of the Philippines (DBP) in the Total Principal Amount of Four Hundred Million & 00/100 Pesos Only (P400,000,000.00) for the Purposes Stated Herein," Honorable Romeo P. Pulmones, City Mayor of Pagadian, entered into a Loan Agreement with the Development Bank of the Philippines (DBP) in the principal amount of Four Hundred Million (P400,000,000.00) Pesos, hereinafter referred to as the "DBP Loan", for the following:
Development of the President Corazon C. Aquino Regional Center Site in the amount of Seventy Million (P70,000,000.00) Pesos;
Acquisition of various heavy equipment units and service vehicles in the total amount of One Hundred Twenty Million (P120,000,000.00) Pesos, as follows:
1 Unit Grader
1 Unit Bulldozer
1 Unit Backhoe
1 Unit Wheeled Excavator
1 Unit Vibrator
5 Units Dump Trucks
Road widening with drainage and sidewalk from J. Zulueta Street fronting Anastacia Pensionne to the Provincial Government Center in the amount of Sixty Million (P60,000,000.00) Pesos; and
Improvement of Boulevard's Sports Complex at Barangay Santa Lucia, Pagadian City in the amount of One Hundred Fifty Million (P150,000,000.00) Pesos.
and executed as security therefore, the Deed of Continuing Assignment of portion of the Internal Revenue Allotment (IRA) and local revenues equivalent to loan amount with hold-out provision equivalent to one (1) monthly amortization until the loans are fully paid;
WHEREAS, the aforesaid Loan Agreement, Deed of Assignment and other documents are now before the Sangguniang Panlungsod for its perusal, study, ratification and approval;
WHEREAS, the terms and conditions contained in the above loan documents are deemed fair, just, legal and in order;
NOW, THEREFORE, be it ordained by the Sangguniang Panlungsod of City of Pagadian, in session assembled that:
SECTION 1. This Ordinance shall be known as "An Ordinance Approving and Ratifying the Loan Agreement, the Deed of Assignment thereto signed and executed between the City of Pagadian, Zamboanga del Sur and the Development Bank of the Philippines (DBP) with all the terms and conditions thereto."
SECTION 2. That this body confirms, ratifies, approves and renders effective and in full force and effect the loan under the terms and conditions of the Loan Agreement and the covering collateral and other documents executed in relation thereto. This ratification includes any and all subsequent requests by the LGU for modification, revision and or amendment to be made on the project as well as on its approved terms and conditions.
For this purpose, the City hereby authorizes the following:
The LGU to execute the Term Loan Agreement, Promissory Notes and other documents relating thereto, and specifically stating that the obligations of the LGU thereunder, as well as the terms and conditions thereof, shall be valid and binding on the LGU and shall not be subject to recall by the Sanggunian for the whole term of the loan, regardless of any change in its composition;
The continuing assignment of the LGU's portion of the IRA and local revenues with hold-out on deposit equivalent to one (1) monthly amortization in favor of DBP until the loans are fully paid;
Authority in favor of DBP to automatically debit on due date from the LGU's CASA deposit account with DBP an amount equivalent to the maturing loan amortization until the loan is fully paid;
The inclusion of appropriation for debt servicing in the LGU's annual budget in accordance with the Local Government Code until the loans are fully paid;
The undertaking that the LGU will not incur additional obligation/ indebtedness without DBP's prior consent; and
DBP shall be the LGU's IRA and major depository bank.
SECTION 3. That the Sanggunian undertakes, as it hereby undertakes to appropriate in the City's Annual Budget for the years 2018 to 2033 an amount sufficient to pay its loan with DBP including interest thereon and other charges. The estimated amount to be appropriated in the Schedule of Payments, hereto attached as Annex "A" which forms part of this resolution, shall be as follows:
YEAR
Development of the President Corazon C. Aquino Regional Center Site
Acquisition of various brand new heavy equipment
Road widening with drainage and sidewalk fronting Anastacia Pensionne to the Provincial Government Center
Improvement of Boulevard's Sports Complex at Barangay Santa Lucia, Pagadian City
TOTAL
2018
P943,158.00
P17,862,208.00
P808,421.00
P2,021,052.00
P21,634,839.00
2019
P7,048,983.00
P17,247,792.00
P6,041,985.00
P15,104,963.00
P45,443,723.00
2020
P8,283,786.00
P16,830,583.00
P7,100,388.00
P17,750,970.00
P49,965,727.00
2021
P8,018,602.00
P16,178,125.00
P6,873,088.00
P17,182,719.00
P48,252,534.00
2022
P7,762,595.00
P15,539,375.00
P6,653,653.00
P16,634,133.00
P46,589,756.00
2023
P7,506,589.00
P14,900,625.00
P6,434,219.00
P16,085,547.00
P44,926,980.00
2024
P7,256,953.00
P14,268,583.00
6,220,245.00
P15,550,613.00
P43,296,393.00
2025
P6,994,575.00
P13,623,125.00
P5,995,350.00
P14,988,374.00
P41,601,424.00
2026
P6,738,568.00
P12,984,375.00
P5,775,915.00
P14,439,788.00
P39,938,646.00
2027
P6,482,561.00
P12,345,625.00
P5,556,481.00
P13,981,202.00
P38,275,868.00
2028
P6,269,867.00
P5,374,172.00
P13,435,429.00
P25,079,468.00
2029
P6,008,984.00
P5,150,558.00
P12,876,395.00
P24,035,937.00
2030
P5,742,839.00
P4,922,433.00
P12,306,083.00
P22,971,355.00
2031
P5,476,693.00
P4,694,308.00
P11,735,770.00
P21,906,771.00
2032
P5,211,337.00
P4,466,860.00
P11,167,150.00
P20,845,347.00
2033
P1,261,120.00
P1,080,960.00
P2,702,400.00
P5,044,480.00
SECTION 4. That this shall remain valid and effective until the Loan with DBP has been fully settled and paid.
SECTION 5. The executed Term Loan Agreement, Continuing Deed of Assignment and Deed of Undertaking shall form part of this Ordinance.
SECTION 6. Any ordinance or parts thereof inconsistent with this enactment is hereby repealed or amended accordingly.
SECTION 7. This Ordinance shall take effect upon its publication and compliance with all procedures required under Republic Act No. 7160 of an ordinance for its validity, including the affixation of signatures of the Sangguniang Panlungsod members, in concurrence thereto, composing at least a majority thereof out of the total members, on all pages of this Ordinance.
SECTION 8. That copies of this Ordinance be furnished to the Honorable Mayor, the City Accountant, the Provincial Auditor, and the Bangko Sentral ng Pilipinas for their information and appropriate action.
ENACTED AND APPROVED by the 12th City Council of Pagadian City during its 68th Regular Session held on 09 January 2018 at the Sangguniang Panlungsod Session Hall, Pagadian City.