Misamis Oriental, Philippines
 

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2012 State of the Province Address
By Oscar Moreno, Governor of Misamis Oriental, Philippines

 

MISORTEL RESUSCITATION

The indebtedness of the Provincial Government with financing institutions for the MISORTEL operations started in 1991. The previous administration has made our internal revenue allotment a collateral to the Municipal Development Fund Office (MDFO) of the Department of Finance for an interest-inclusive loan which by the year 2012, the amount would reach to around PhP159M. The said loan has costed the Provincial Government in payments to around PhP19M annually from 2004 to 2010. For years 2011 and 2012, more than PhP18M is the amount due. We are expecting full payment of this loan this year, by the month of December.

It was not the only loan incurred by MISORTEL prior to my taking over the chairmanship of its board starting the second half of 2004 for being the Governor. In 2001, the loan amount applied for MISORTEL with the Development Bank of the Philippines or the DBP in 1994 ballooned to PhP268.60M, excluding its total interest of PhP156M. This loan still has a balance of PhP80.5M, and repayment period ends in 2016.

During my watch, we borrowed PhP45M from the DBP to procure New Generation Network or NGN switch that would replace the legacy switches installed in 1991. The NGN technology though could only cover the 2,000 lines and leaving 9,000 lines with the old connecting systems. With that loan also, MISORTEL was made capable of providing broadband internet services along 400 lines.

At the start of my term, our rehabilitation measures were not only focused on the acquisition of state of the art facility so MISORTEL can compete in the market of technology. We made negotiations to lessen the cost that was due from us with our inter-connect partners. Payables were reconciled such that an obligation of around PhP169M would be reduced to PhP39M.

For 2012, we are granted authority by the Sangguniang Panlalawigan to borrow PhP40M from the DBP for the full migration of MISORTEL using the NGN technology. [Next: Education]

 

Introduction | Poverty Alleviation | Revenue Generation | Investment in Infrastructure | MISORTEL Resuscitation | Education | Environmental Protection and Management | Hospital and Health Systems | Agricultural Productivity | Teamwork and Streamlined Bureaucracy | Conclusion