LINGAYEN - The sangguniang palalawigan deferred last Monday approval of the planned P.6 billion loan by the provincial government with a government bank fueling doubts it would no longer be pursued.

The loan, according to plans, will be used for reconstruction and rehabilitation of the province which was devastated by killer typhoon Cosme middle of last month.

Board Member Alfonso Bince, Jr., who earlier opposed the seeking of loan with the Land Bank of the Philippines because of pending loans with the same bank, turned around and himself proposed the availment of P650 million loan.

He stressed however that the money would be solely used for reconstruction and rehabilitation purposes.

The plan was approved on second reading by the body in an earlier session but it decided to suspend its approval on the third and final reading in the last deliberation pending questions as to the projects to be implemented, it was learned.

The provincial board wanted to seek a loan with the bank in the wake of ‘minimal’ support by the national government.

It will be recalled that President Macapagal-Arroryo, in her first visit here some six days after the May 17 tragedy, advised local officials to use their calamity funds in their rehabilitation efforts.

She also directed the release of P500 million for the purchase of GI sheets to help those indigent families whose houses were badly damaged by the howler. The money will be shared by three provinces hit by the storm - Zambales, Pangasinan and La Union.

Some government agencies have also lent support to the rehabilitation work as noted during the second typhoon inspection visit in Bugallon town of the Chief Executive a little over a week after her first trip here on May 23.

Considering the huge damage both to private and public facilities, the financial assistance from the national government appeared not enough to defray the cost.

Apparently, that situation prompted the provincial government to decide to source out funds thru lending agencies.

Bince, who had vehemently objected to the credit line of some P900 million made available by the Land Bank to the province before the disaster, now saw the need to apply for a loan since the province’s calamity fund of some P65 million was grossly inadequate in the face of billions in damages.

The province is still paying for its loans sought earlier by the previous administration to finance its projects.

Meanwhile in Dagupan City, Land Bank has granted the request of the city government for a moratorium of two years on the repayments of the city’s loans with the bank.

Mayor Alipio Fernandez, Jr. said the move will help the city recoup its losses as a result of damages brought by typhoon Cosme.

The city, under the previous administration, borrowed more than P300 million to finance the construction of the multi-storey Malimgas market, the purchase of dredging machine and other projects.

The market however is not earning enough money to pay for the huge loan due to poor business in that area.