THE Department of Finance (DoF) has committed to help fund the rehabilitation of Ormoc City devastated by a magnitude 6.5 earthquake last month.
In a statement on Monday, the agency said it will finance the reconstruction of Ormoc City’s water source and main pipes that were damaged during the quake, the evacuation efforts and the resettlement of three barangay (villages) affected by landslides and aftershocks.
“Mayor [Richard] Gomez [of Ormoc City]will ask the City Council to convene for the required resolution, then we will proceed immediately for appraisal to establish the final amount of loan assistance,” Executive Director Helen Habulan of the Municipal Development Fund Office (MDFO) said in her report to Finance Secretary Carlos Dominguez 3rd.
“Included in the financing are the acquisition of heavy equipment which the city needs for its extensive rehabilitation and acquisition of the necessary materials for the resettlement of affected families,” she added.
Habulan added the MDFO has placed Ormoc City’s net borrowing capacity at P3.2 billion and with no existing loans on record, this makes the city fully capable of repaying its obligations.
The MDFO administers the Municipal Development Fund (MDF), a special revolving fund that was established for relending to local governments to enable them to tap funds from local and international sources for the implementation of their respective development projects.
A magnitude 6.5 quake hit Ormoc on July 6, with close to 300 aftershocks recorded. It was the strongest to hit Ormoc in recent years, killing two persons and injuring about 100 others.
The quake also destroyed over 500 houses and damaged 62 others in 12 mountain villages in the city. The supply of water and electricity to the city were also cut off and are now being fully restored.
Initial estimate placed at P1 billion the amount needed for the rehabilitation efforts in the city.