Attorney Petit Baldado, a former Dumaguete city councilor, has issued a formal public statement raising several fiscal concerns over the City Government of Dumaguete's proposed ₱2.185 billion loan, which is intended to finance the construction of two major infrastructure projects — a Twin-Storey City Hall Extension Building and a Four-Storey Dumaguete City Public Market — both to be carried out under a Design and Build Scheme.
The statement, released on Friday, May 22, 2026, was issued by Attorney Petit Baldado, a former Dumaguete city councilor with extensive experience in government service. Baldado said the loan proposal, after months of public discussions on radio and social media platforms, has now been formally presented to the public.
While expressing support for infrastructure development as a driver of local progress, Baldado outlined five specific areas of concern he said merit careful deliberation before any final decision is made by the Dumaguete City Council.
Proposed Loan Covers Two City Infrastructure Projects
According to the public statement, the ₱2.185 billion loan is earmarked for two distinct government facilities. The first is a Twin-Storey City Hall Extension Building, and the second is a Four-Storey Dumaguete City Public Market. Both projects are to be implemented through a Design and Build Scheme, a procurement method where a single contractor handles both the architectural design and the actual construction of a project.
Baldado acknowledged the importance of both projects as components of urban development in Dumaguete City but questioned whether pursuing them through a substantial loan at this particular time represents the most fiscally prudent course of action for the city government.
Long-Term Debt Service May Strain Annual City Budget
One of Baldado's primary concerns centers on loan amortization and how the repayment schedule will affect the city's annual budget in the years ahead. He noted that a significant long-term loan will inevitably become a fixed obligation in the city's annual budget, potentially narrowing the fiscal space available for social services and grassroots development programs.
"It is essential to ensure that long-term debt servicing will not inadvertently constrain programs that directly benefit vulnerable sectors of the community, including those funded through the city's share in the National Tax Allotment (NTA)," Baldado stated in the document.
The NTA, which replaced the Internal Revenue Allotment (IRA) under the Mandanas-Garcia ruling, constitutes a major portion of local government unit (LGU) revenues in the Philippines and funds a broad range of local public services and programs.
Inflation and National Fiscal Pressures Cited as Complicating Factors
Baldado also pointed to the current economic environment as a factor that must be weighed against any long-term financial commitment. He cited persistent inflation as a continuing pressure on both household budgets and government operations, and referenced public statements from national economic managers acknowledging fiscal constraints at the national level that could have cascading effects on local government planning and spending capacity.
He further situated the proposed loan within the broader national fiscal context, noting that the country's growing national debt has been repeatedly acknowledged in public briefings by officials from the Department of Finance and economic planning agencies. While Baldado recognized that local governments retain fiscal autonomy, he cautioned that national-level constraints may still indirectly affect intergovernmental transfers and funding priorities over time.
COA Audit Findings on Other LGU Projects Cited as Cautionary Lessons
Baldado also drew on the documented experiences of other local government units as a basis for urging greater caution. He referenced audit observations from the Commission on Audit (COA) across various instances involving government-funded infrastructure projects, which have highlighted concerns such as project delays, cost adjustments, and implementation inefficiencies.
"These findings underscore the importance of ensuring strong feasibility studies, transparent procurement processes, and robust project monitoring systems to safeguard public funds and ensure project effectiveness," Baldado said in his statement.
He did not cite specific COA reports by year or case number but referred broadly to a pattern of audit observations applicable to LGU infrastructure initiatives across the country.
Baldado Urges Comprehensive Feasibility Study Before Final Decision
Rather than outright opposing the loan or the proposed projects, Baldado called for a more comprehensive, transparent, and evidence-based feasibility study to be conducted by qualified experts. He said this step is necessary to confirm that the financial undertaking will not compromise essential public services or the long-term fiscal stability of Dumaguete City.
He also suggested that city planners examine alternative funding mechanisms and revisit the timing and prioritization of the projects before committing to such a large loan obligation. "A careful review of priorities, timing, and possible alternative funding mechanisms may help ensure that development initiatives remain both necessary and financially responsible," his statement read.
Statement Directed to City Councilors for Deliberation
Baldado addressed the conclusion of his statement directly to the elected members of the Dumaguete City Council, expressing confidence in their capacity to deliberate independently and act in the public's best interest.
"I remain confident in the wisdom and independence of our elected City Councilors, trusting that they will carefully deliberate on this matter and act in the best interest of the public, guided by their principles and mandate to uphold the welfare of the people," he wrote.
The statement closed with a message in Cebuano, in which Baldado identified himself and affirmed his continued commitment to the people of the city: "Kini si Petit Baldado, nga kung dalikdan mo, magpabilin lang japun para sa mga tawo. Nagasaad nga way makababag, sa akong pagmahal sa Dakbayan, si Petit magpabilin kanunay." The passage translates broadly to a pledge that, whatever may come, he will remain devoted to the city and its people.
City Council Yet to Issue Formal Response to Raised Concerns
As of the publication of this report on Friday, May 22, 2026, no formal response from the Dumaguete City Council or the Office of the City Mayor has been made available in relation to the specific concerns raised in Baldado's public statement.
The proposed ₱2.185 billion loan and the two infrastructure projects it would finance remain subject to deliberation by the Sangguniang Panlungsod of Dumaguete City. The outcome of those deliberations is expected to determine whether the loan proceeds, is modified, or is set aside in favor of alternative funding arrangements.
Members of the public who wish to follow the progress of the city council's deliberations on the matter may monitor official announcements from the Dumaguete City Government through its official communications channels.
Photo credit: Photo courtesy of Petit Baldado / Telegram