Government-controlled Land Bank of the Philippines (Landbank) has released a P120-million loan to the Municipal Government of Tuburan in Basilan to construct and develop more farm-to-market roads for the 1,500 farmers and fishers in the town.
In a statement Wednesday, June 26, Landbank said the loan will be used to purchase various heavy equipment to accelerate the construction and maintenance of farm-to-market roads and related infrastructure projects in the area.
Landbank is hoping the loan will “enhance the municipality’s road network and provide over 1,500 local farmers and fishers with improved access to agricultural technology and farm material inputs, plus reduced transportation costs for their produce.” It is also expected to support the town’s economic growth and provide service to its underserved communities.
The bank said the local government unit (LGU) will purchase 10-wheeler dump trucks, 10-wheeler mixer trucks, wheel loaders, a hydraulic crawler excavator, and a 10-wheeler self-loading truck. This will help reduce operational costs associated with renting and subcontracting equipment for current and future construction projects across the town.
“The municipal government requires logistics to maintain existing road networks and other infrastructure projects,” said Landbank, adding that funding “will be crucial in addressing this need and advancing local growth, considering that Tuburan is an agricultural community with most of its land area dedicated to coconuts, rubber, and cassava.”
The loan agreement was signed by the LGU and Landbank last May 23, 2024.
Landbank President and CEO Lynette V. Ortiza said the bank is always ready to “serve the growth needs of partner local government units to bankroll initiatives that stimulate economic activities.”
“This complements our efforts in support of the agriculture sector and other key industries contributing to building inclusive and sustainable local communities,” she added.
Landbank has released about P113.6 billion of loans to LGUs as of April this year. These loans are used for the acquisition of heavy equipment, construction and maintenance of farm-to-market roads, railways and bridges, utility projects, school and hospital buildings, street lights, and computerization of LGU operations, among others.
Landbank is the country’s second largest universal and commercial bank. It reported a net income of P40.3 billion in 2023, up by 33.8 percent from P30.1 billion in 2022 amid an expansion in its loans and investments.