The Finance Department plans to issue P13.5 billion (about $241 million) worth of retail bonds in the domestic market to help raise funds for the reconstruction and rehabilitation efforts of Marawi City.
The Bureau of Treasury said in a report to Finance Secretary Carlos Dominguez III that the initial bond issue would match the P10-billion allotted this year under the national budget for the Bangon Marawi Comprehensive Rehabilitation and Recovery Program and another P3.5 billion for 2019.
Deputy treasurer Erwin Sta. Ana said during a recent DoF executive committee meeting the agency would use the online retail treasury bond format for the first tranche of the domestic bond issue, dubbed by Dominguez as the “Marawi Bonds Series 1.”
“As we need money later on, we will issue more bonds,” Dominguez said.
The tenor of the Marawi bonds would depend on market conditions, according to Dominguez.
He said the bonds would appeal to patriotic citizens who would like to help rebuild the lives of their fellow Filipinos in the war-torn city.
The proposed financing for specific projects identified under the Bangon Marawi program included $100 million (P5.44 billion) from the Asian Development Bank in the form of an emergency assistance loan, $200 million (P10 billion) from the national budget this year and $241 million (P13.5 billion) from the sale of the first tranche of the Marawi bonds for a total of $541 million.
Japan and the Philippines’ other development partners also committed to provide funding support to help implement the BMCRRP.
The DoF’s International Finance Group said the funding gap of $64 million (P3.45 billion) would be raised through a pledging session with development partners in November.
The World Bank also plans to pool contributions, in the form of grants, from the Philippines’ development partners under a proposed Bangon Marawi Multi-Donor Trust Fund to assist in the
implementation of BMCRRP.
The government also requested the World Bank to establish a project monitoring unit under the Task Force Bangon Marawi to monitor the implementation status of all programs, projects and activities identified in the BMCRRP.
The Finance Department asked all implementing agencies to submit status reports on programs, projects, and activities they were handling to determine financing gaps.
