LandBank extends P120-million loan to Basilan town

State-run Land Bank of the Philippines (LandBank) granted a P120-million loan to the Municipal Government of Tuburan in Basilan to acquire heavy equipment to ramp up the construction of roads.

In a statement, LandBank said on Wednesday the loan will bankroll the municipality’s construction and maintenance of farm-to-market roads and other infrastructure projects. 

The loan will enable improved access to agricultural technology and farm material inputs to more than 1,500 local farmers and fisherfolk as well as reduce the transportation costs of their produce, LandBank said.

LandBank added the loan will support the local government’s strategic investments in promoting economic growth, especially in the town’s underserved communities.

“LandBank stands ready to serve the growth needs of partner local government units to bankroll initiatives that stimulate economic activities.

This complements our efforts in support of the agriculture sector and other key industries contributing to building inclusive and sustainable local communities,” said LandBank President and CEO Lynette V. Ortiz.

Specifically, the loan will be used to purchase 10-wheeler dump trucks, 10-wheeler mixer trucks, wheel loaders, a hydraulic crawler excavator and a 10-wheeler self-loading truck to reduce operational costs in renting and subcontracting equipment for current and future construction projects across the town.

As an agricultural community, LandBank said Tuburan requires logistics to maintain existing road networks and other infrastructure projects since most of its land area are dedicated to coconuts, rubber and cassava.

“The funding from LandBank will be crucial in addressing this need and advancing local growth.”

Tuburan Mayor Mayor Jhaber S. Kallahal said the funding extended by LandBank will enable the municipality to implement crucial projects and initiatives that will benefit its citizens and enhance their overall quality of life.

“We value the strong partnership we have built with LandBank over the years and look forward to work together towards our shared vision of a thriving and prosperous community,” Kallahal added.

The loan agreement between the Municipal Government of Tuburan and LandBank was signed by Kallahal and LandBank Senior Vice President Charlotte I. Conde last May 23 in Zamboanga City.

They were joined by Tuburan Municipal Treasurer Abubakar U. Mohammad, LandBank Zamboanga City Lending Center Head Zenaida K. Valencia and Account Officer Jaydee N. Bongon, LandBank added.

The state-run bank has extended P113.6 billion in outstanding loans to local government units in the country as of April.

These loans support local development projects nationwide, including the acquisition of heavy equipment, construction and maintenance of farm-to-market roads, railways and bridges, utility projects, school and hospital buildings, street lights, and computerization of LGU operations, among others.