PHL, KEXIM-EDCF sign loan deal for P4.9-B Panguil Bay Bridge project

The Philippine government on Thursday signed a loan agreement with the Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF) for the Panguil Bay Bridge project in Northern Mindanao.

Constructing the bridge was estimated to cost P4.9 billion.

The agreement was signed by National Treasurer Roberto B. Tan and Korean Chief Representative Yongkeun Oh on behalf of the Export-Import Bank of Korea-Economic Development Cooperation Fund.

The Department of Budget and Management noted P4.2 billion will be funded through loan proceeds, and the remaining P586 million by the Philippine government.

"DBM has issued the project’s Forward Obligational Authority (FOA), which gives an overview of the annual investment cost of the Panguil Bay Bridge project, particularly on KEXIM-EDCF and the Philippine government," the department said.

This year, P44 million has been included in the budget of the Department of Public Works and Highways (DPWH) to cover land acquisition, administrative support, and government taxes.

For fiscal years 2017 to 2019, the budgetary requirements will be accommodated within the budget ceiling of the DPWH.

"We appreciate the robust partnership we share with the Republic of Korea – this project is the latest evidence we have of friends from abroad placing their faith on our people," Finance Secretary Cesar V. Purisima said.

Under the agreement, the loan will be purely concessional and will carry an interest rate of 0.15 percent a year for non-consulting services and 0.0 percent per annum for consulting services, for a total maturity of 40 years inclusive of a 10-year grace period, the Department of Finance noted in a separate statement.

The Panguil Bay Bridge project was first discussed in 2014 through the Investment Coordination Committee and NEDA board.

The original funding was pegged at P5 billion, but after a review by the DPWH the costs of direct construction, consultancy, and physical contingency turned out to be lower and brought down the cost to P4.9 billion.
 
A major infrastructure development in Northern Mindanao, the Panguil Bay Bridge will connect Tangub City, Misamis Occidental and Tubod City, Lanao del Norte and reduce travel time between Tangub and Tubod from the usual 2.5 hours to 7 minutes, the DBM noted.

It will also significantly improve the travel time from Cagayan de Oro and Iligan to the cities of Tangub, Ozamiz, Oroquieta, Dipolog, and Dapitan in Zamboanga de Norte, it added. – With Jon Viktor Cabuenas/VDS, GMA News