Korea ready to lend nearly P9B for port
The government of South Korea, through its Export-Import Bank, pledged to finance the construction of the New Cebu International Container Port project for US$173 million or about P8.6 billion.
Cebu Port Authority (CPA) General Manager Angelo Verdan said that the loan, if it pushes through, would carry an interest rate of 0.15 percent per year for non-consultancy. Loan proceeds spent on consultancy services would be charged zero interest.
Verdan said that the pledge, made in mid-November 2017, is awaiting acceptance by the Philippine Government.
“Should the pledge be accepted, a loan agreement will be signed by the two governments. The timeline for signing of the loan agreement is in February 2018,” Verdan said.
Since 1976, Korea Eximbank has been providing “comprehensive loan and guarantee programs to support Korean businesses conducting business overseas.”
It operates the Economic Development Cooperation Fund, which is an official development assistance program.
It’s a P10B project
Pre-construction and actual construction processes, including getting an environmental compliance certificate from the Department of Environment and Natural Resources and detailed engineering, has a timeframe of 49 months.
Verdan said the site, a 25-by-25-hectare area to be reclaimed, is going to be off the coast of Tayud in Consolacion town.
The cost of the entire port was estimated at US$205 million or P10.2 billion.
It was approved early last year by the National Economic and Development Authority (NEDA) Board chaired by President Rodrigo Duterte.
In a separate interview, lawyer Janilo Rubiato, chief executive officer and general manager of the Philippine Reclamation Authority (PRA), said the CPA first has to get the PRA’s approval for the reclamation.
If the new port is realized, cargo handling services will be awarded after a public bidding, and the existing Cebu International Port will be converted into a port for cruise vessels.
The Department of Transportation is the project executing agency, Verdan explained, while the CPA shall be the operating agency and owner.