PH secures P13-billion loan from Korea for Dumaguete Airport dev’t 

The Philippine government’s plan to develop a new Dumaguete City Airport in Negros Oriental has secured funding from the government of South Korea.

At the Kapihan sa Manila Bay news forum on Wednesday, Finance Secretary Ralph Recto said the Department of Finance (DOF) and state-owned Export-Import Bank of Korea (KEXIM) have signed a loan agreement to finance the P17.06-billion new Dumaguete Airport Development Project.

Under the financing deal, KEXIM will provide P13.15 billion to bankroll the project.

The remaining cost, meanwhile, will be shouldered by the Philippine government.

Recto said the loan for the new Dumaguete Airport project carries an interest rate of 0.05% per year for non-consulting services and 0% per annum for consulting services.

The Finance chief said the loan shall be repaid in 40 years, inclusive of a 10-year grace period.

“The new airport will enhance our capacity to welcome a surge of tourists in the post-pandemic era. 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,” said Recto.

The new Dumaguete City Airport project, covering 197.55 hectares of land development, will be erected in the Municipality of Bacong, Negros Oriental.

In May, the Department of Transportation (DOTr) disclosed its plan to relocate the Dumaguete City Airport along with other regional airports as these gateways were deemed congested.

“The necessity for a bigger and more modern airport is undeniable, especially considering that Negros Oriental currently has only one major airport,” said Recto.

Apart from the loan agreement for the new Dumaguete airport, the DOF and KEXIm also signed a $3-billion loan facility which can be tapped as an additional financing for the government’s infrastructure projects.

The Economic Development Promotion Facility (EDPF) “will enable us to deliver more infrastructure projects nationwide, from roads and bridges to disaster risk reduction efforts,” according to the Finance chief.

Among the projects in the pipeline being considered for possible funding assistance under the loan facility are the Panay-Guimaras-Negros Island Bridges; the Consolacion-Liloan Bypass Road Project; the Lapu-Lapu Coastal Road Project of the DPWH; and the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation Project Phase II.

The projects to be funded under the EDPF will carry an indicative interest rate of 1.2%, to be repaid in 25 years, inclusive of a seven-year grace period. — BM, GMA Integrated News