CAGAYAN DE ORO CITY — Facing pushback over a proposed P8.5 billion loan for a new government complex, the Cagayan de Oro City government is detailing exactly where the money would go and the legal safeguards designed to protect taxpayers.
The defense of the mega-project follows recent criticism from Rep. Lordan Suan of the 1st District. In a public Facebook post, Suan questioned the wisdom of borrowing billions for a new city hall while basic services and infrastructure projects across the city remain unfinished. He warned that the debt could burden residents for up to two decades, arguing it shouldn't be a priority during current economic challenges.
In response, City Hall is attempting to shift the conversation from the sticker shock to the mechanics and scope of the proposed financing.
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Through the City Information Office (CIO), officials clarified that the P8.5 billion package isn't just for a building. The loan covers the entire development pipeline: land acquisition, site development, construction of multiple office buildings, and all necessary furniture and fixtures to ensure the complex is immediately operational upon completion.
The ultimate goal, city officials argue, is to modernize public facilities and consolidate scattered government offices into a highly efficient, accessible hub for residents.
However, the massive borrowing plan is not yet a done deal.
“The proposed loan is still subject to approval by the City Council and has not yet been finalized,” City Information head Jade Adeser stated on the CIO’s official Facebook page.
Beyond local approval, the loan faces national scrutiny. Under the Local Government Code of 1991, local government units are authorized to take on debt for major infrastructure and development projects, but only after strict fiscal reviews. The Bureau of Local Government Finance, an agency under the Department of Finance, must evaluate the city's borrowing capacity.
Jordan Apat, a consultant from the mayor’s office, cited Sections 296 and 297 of the law to defend the proposal's legality.
“These borrowings undergo review to ensure that the local government can repay the obligation without compromising essential services,” Apat said.
Apat emphasized that integrating local and national government offices into a single location will function as a one-stop service center, significantly improving the resident experience.
“Apart from saving time and transportation costs, transactions will be easier and hassle-free because most agencies will already be within the complex, especially when applying for permits and other documents,” Apat said.
City officials have not yet released a final timeline for the project, pending the City Council's deliberation on the loan.
