THE Department of Finance (DoF) said it signed a P13.15-billion loan agreement with the South Korean government to finance the new Dumaguete airport.
The loan was provided by the Export-Import Bank of Korea (Korea Eximbank), Finance Secretary Ralph G. Recto said at a forum on Wednesday.
In a separate statement, the DoF said the project is expected to boost tourism and trade, as well as enhance the standard of living in Negros Oriental and the surrounding area.
“With the new Dumaguete airport, we anticipate accommodating up to 2.5 million passengers per year, up from just 800,000. From serving limited domestic flights, we can now open the door to international routes,” Mr. Recto was quoted as saying during the loan agreement signing.
The project’s total cost is P17.06 billion, with P3.91 billion to be funded by the government.
It will be built on 197.55 hectares in Bacong, Negros Oriental, the DoF said.
The loan will charge interest of 0.05% for non-consulting services and 0.0% for consulting services, payable over 40 years with a grace period of 10 years.
The government is also looking to upgrade more regional airports to enhance connectivity, Mr. Recto added.
Meanwhile, the government and the Korean Eximbank also signed a $3-billion Economic Development Promotion Facility to support the Philippine infrastructure flagship program.
“This agreement serves as an additional financial bridge that will fill the gaps in realizing our ambitious Build Better More Program,” Mr. Recto said in his speech.
There are currently 185 infrastructure flagship projects in the pipeline valued at P9.14 trillion.
The $3-billion loan has an interest rate of 1.2%, payable over 25 years, with a 7-year grace period.
Projects to receive support from the new facility include the Panay-Guimaras-Negros Island bridges; the Consolacion-Liloan Bypass Road project; the Lapu-Lapu Coastal Road project; and the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation Project Phase II.
The financing agreements were signed by Mr. Recto and Korean Eximbank Chairman and President Yoon Hee-sung on Wednesday. — Beatriz Marie D. Cruz
