ALLEN, Samar—The Land Bank of the Philippines (Landbank) announced its executives signed a P160-million loan agreement with the local government of this municipality, in line with continuing efforts to support countryside development.
“The funding will be used to fast-track the town’s various development projects, which include the construction of an improved water system and public market, aimed at delivering essential public services while helping to reduce environmental degradation,” read the state-run lender’s statement issued last Tuesday.
“Landbank carries on its commitment of servicing the requirements of our LGU [local government unit] partners in support of their local development agenda. With these projects of Allen LGU, their constituents will be benefitted with basic but essential services including an improved water system and a public market,” Landbank President and CEO Lynette V. Ortiz was quoted in the statement as saying.
The Landbank loan was officially signed by Allen Mayor Jose Arturo D. Suan and Landbank Samar Lending Center Department Manager Virgilio D. Cabacang, alongside Account Officer Ricardo P. Palacio III on May 9, 2023.
“I appreciate Landbank’s continued support to the development of our municipality. Our people are ecstatic to witness the growth that these projects will bring to Allen,” said Suan was quoted in the statement as saying.
THE Landbank said the bulk of the loan amounting to P75 million will fund the construction of a Water System Level-3, which will provide safe drinking water to at least 1,603 households and mitigate infection from water borne diseases.
To drive the local economy, P40 million will be used for the construction of the public market extension and development of Rizal Street as hubs for local businesses and vendors to promote local food and generate employment opportunities.
A total of P20 million will be allotted to construct a 400-meter drainage system to mitigate constant flooding in barangays Kinabranan 1 and 2, and Sabang 1 and 2.
The loan will also help finance the development of the public cemetery worth P10 million, that will address current over-crowding in the municipality’s existing cemetery.
Lastly, the local government of Allen allotted P15 million for lot acquisition for a new local university campus that will offer more college courses and increase the number of students it can accommodate.
Landbank has backed the development of the Municipality of Allen since 2006, financing projects such as the construction of a transport terminal and water system facility.
The bank has maintained its dominance as the biggest development partner of the LGU sector towards local development, with all 1,717 LGUs nationwide maintaining deposit accounts with the state-run bank. As of 31 March 2023, Landbank’s outstanding loans to LGUs nationwide have reached P94.5 billion.