The council has tasked the committee on laws, human rights and justice to study and submit its comments/recommendations on the possibility of amending Resolution 340, s. 2019, which approved the master redevelopment plan of the Baguio City Public Market submitted last year by a technical working group.
Mayor Benjanim Magalong earlier said he is for a public-private partnership (PPP) modality in the plan to modernize the public market as it does not entail any expense on the part of the city government.
City Administrator and Selection Committee chair Bonifacio dela Peña said there are two proponents that submitted their pre-feasibility study under the recommended scheme which is pending deliberation in the committee. He said whoever will be awarded the original proponent status (OPS), will conduct a full-blown feasibility study on the socio-economic, financial, technical, and institutional matters about the project.
Aside from the PPP scheme, other means being considered are for the city to finance the market’s development, or through loan.
the executive-legislative discussion about the issue will continue during their session tomorrow.
On Monday, the city council authorized the mayor to enter into a memorandum of agreement with Small Business Corporation (SBC) President and Chief Executive Officer Ma. Luna Cacanando for the implementation of the economic stimulus package for micro and small enterprises in Baguio, subject to negotiation with the SBC on the possible sharing of service fee; requiring a co-maker of the borrower; and for an obligation by the SBC to file cases against delinquent borrowers.
Signing of the MOA is an offshoot of the council’s passage of Resolution 386, s. 2020, approving the guidelines in the grant of loans for micro and small enterprises affected by the enhanced community quarantine in their operations.
The city council allotted P100 million for the financing plan.
Micro enterprises are businesses with gross receipts of up to P3 million, while small enterprises are businesses with gross receipts of over P3M to P15M.
To qualify for the loan program, the enterprise must be 100 percent Filipino-owned; legitimately operating for at least one year prior to March 16, affected by the enhanced community quarantine including similar community quarantine declarations; with gross receipts of up to P15M; business should be within Baguio; have not availed of similar packages from other government institutions; and with favorable negative file information system/credit checking result.
The minimum loanable amount is P10,000 up to a maximum of P50,000 for micro, and up to P100,000 for small enterprise, at zero interest.
Loans of P50,000 is payable within six months up to 12 months; while loans above P50,000 is up to 24 months, exclusive of grace period. The loan shall have a maximum grace period of six months.
A minimal service fee of six percent is charged on loans payable for 12 months and eight percent for more than 12 months, exclusive of grace period, which shall be deducted from the borrower’s loan to be given to the SBC as the city’s partner.
A monthly penalty rate of 0.5 percent on the outstanding balance shall apply to borrowers who fail to pay their monthly amortization. Penalty collected shall be given to the city government of Baguio.
A co-maker is not required except for those who are 60 years old and above, a borrower has to include an immediate family member/relative with a source of income.
No collateral is required under the program, but in case of death of borrower, the city government will recover from the estate of the deceased.
The council has furnished a copy of Ordinance 54, s. 2020 or the “Baguio City Rental Holiday Ordinance” to the transition management committee (TMC) of the Marharlika Livelihood Complex (MLC) of the Department of Agriculture for its recommendation on the ordinance.
The council’s action is in response to the request of President of MLC Unified Tenants Association, Inc. president Adelaida Cagalingan for a holiday on their rentals covering the ECQ, 25 percent discount during the GCQ, and MGCQ, and 15 percent discount on the months that they were only able to open three times a week.
Human Settlements Development Corporation and MLC General Manager Danilo Padua said they acknowledge all issuances in the City of Baguio, but there are some concerns that they need to consult with higher authorities on fiscal matters like the rental as they are a proprietary entity.
He said MLC cannot grant a 100 percent rental holiday due to a TMC resolution approved last May 28, which allows only a discount on rental which is in consonance to Department of Trade and Industry Memorandum 20-21 that allows national government entities to renegotiate rent payment options.
April 25, 2024
