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South Korea lends PH P8.8B for new Cebu port

Thursday, 07 June 2018 | 00:00

The soon-to-rise P10.1-billion new international container port in Cebu has secured financing from South Korea on the sidelines of President Duterte’s state visit, the Department of Finance (DOF) said on Tuesday.

In a statement, the DOF said that the Philippine and South Korean governments signed last Monday the $172.6-million, or about P8.8 billion, loan agreement for the upcoming Cebu International Container Port.

According to the DOF, the loan will be slapped with a preferential interest rate of 0.15 percent a year for nonconsulting services, with a zero rate for consulting services.

The loan is payable in 40 years, including a 10-year grace period.

“Aside from the construction of physical structures, the loan also covers the procurement of cargo handling equipment and consulting services,” the DOF said.

Finance Secretary Carlos G. Dominguez III signed the agreement on behalf of the Philippine government, while Export-Import Bank of Korea chair Sung Soo-eun represented the South Korean side during ceremonies witnessed by President Duterte as well as South Korean President Moon Jae-in.

The $199.3-million port will rise on a 25-hectare tract of reclaimed land in Consolacion town, according to the DOF.

“It will include a berthing facility with a 500-meter quay wall length that can simultaneously accommodate two 2,000 TEU (twenty-foot equivalent unit) vessels; operating facilities and structures for containers such as a freight station and inspection shed; an access road and bridge; and a dredged waterway and turning basin,” the DOF added.

Dominguez told reporters in a text message Monday night that the commitment for official development assistance from South Korea was doubled to $1 billion in the next five years until 2022 from $500 million in 2011 to 2013.

Also, the South Korean government “indicated that they will help in the Marawi rehabilitation as soon as the plans are finalized” by Task Force Bangon Marawi chair Eduardo D. Del Rosario, Dominguez added.
Source: Philippine Daily Inquirer

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