Philippines secures $56.6-M loan for Panay-Guimaras-Negros Island bridges project

The Philippine government has secured a new loan for a big-ticket infrastructure project, less than two months before the end of the Duterte administration.

In a statement, the Department of Finance (DOF) said the Philippines and South Korea on Wednesday, May 4, exchanged their copies of the agreement for the $56.6-million loan extended by the Export Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF) to finance the engineering services for the Panay-Guimaras-Negros Island Bridges Project.

On behalf of their respective governments, Finance Secretary Carlos Dominguez III and KEXIM-EDCF executive director Tae-Soo Kim received from each other copies of the loan agreement, which was signed last month.

The interisland bridges project involves the construction of two sea-crossing, four-lane bridges spanning 32.47 kilometers combined—including connecting roads and interchanges—that will connect the islands of Panay, Guimaras, and Negros in Western Visayas, the Finance department said.

It added that the project, which will be implemented by the Department of Public Works and Highways, is among the big-ticket items under President Rodrigo Duterte’s “Build, Build, Build” program.

KEXIM-EDCF’s loan for the engineering services of the project, which includes the preliminary design, detailed engineering design, and procurement assistance, will support the Philippine government in preparing and completing the necessary activities and works prior to the construction of the two bridges.

The DOF said the zero-interest loan with a 0.1% service charge per disbursement covers a maturity period of 40 years, inclusive of a 10-year grace period.

“With a total estimated cost of P187.54 billion, the Panay-Guimaras-Negros Island Bridges Project is expected to commence engineering services this year, and begin construction in 2025,” the department said. —VBL, GMA News