P10B Cebu port loan for signing soon

After the loan agreement is signed, the Export-Import Bank of Korea will nominate a list of qualified Korean contractors who will design the project.

Among President Rodrigo Duterte’s activities in South Korea next week will be the signing of a loan agreement for the new Cebu international container port.

Rodrigo Duterte is scheduled to visit South Korea next week to sign the loan agreement for the construction of the P10-billion Cebu International Container Port.

Cebu Port Authority (CPA) General Manager Angelo Verdan said that part of Duterte’s agenda in South Korea is the signing of the loan agreement for the international port located in Barangay Cansaga, Consolacion.

Korean International Cooperation Agency (KOICA) conducted the feasibility study for the “world-class” modern port, while the construction will be financed by the Export-Import Bank of South Korea, Verdan said.

He said that the draft agreement was already prepared by both governments of South Korea and the Philippines and will become final when Duterte and the Korean Government officials sign it.

After the loan agreement is signed, the Korean consultants for the project will be selected.

He said the loan is US$198 million or equivalent to P10.4 billion (using yesterday’s exchange rate of $1=P52.55), which may increase if the peso weakens.

Verdan said the Philippine Government has a counterpart of about US$40 million to cover preliminary works like the survey of the land area for the site of the port, among others.

The project includes opening of three new access roads to the port, which will require the purchase of road right-of-way, particularly near the Marcelo Fernan Bridge and the Mandaue-Mactan Bridge, to connect the existing Cebu International Port to the new port.

He said the construction of a modern container port will help ease traffic in the cities of Cebu and Mandaue. /