PH, Sokor sign loan pact for Cebu Port Project

SEOUL, South Korea -- The Philippines and South Korea signed on Monday a USD172.64 million loan agreement for the construction of a new international container port in Cebu that aims to free up the existing seaport in the province; and provide a more efficient and reliable transport infrastructure for the unimpeded flow of goods and services in the Visayas.

The agreement was signed by Finance Secretary Carlos Dominguez III on behalf of the Philippine government, and Sung-Soo Eun, chairman and president of the Export Import Bank of Korea (KEXIM).

President Rodrigo Duterte and South Korean President Moon Jae-in witnessed the signing of the loan accord, which was among the five agreements signed during the Philippine leader’s official visit here.

A new Cebu International Container Port with a total estimated project cost of PHP10.1 billion (approximately USD199.25 million) will be built on a 25-hectare reclaimed land in the town of Consolacion in Cebu.

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.

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

KEXIM-EDCF will extend USD172.641 million (approximately PHP8.8 billion or 186.97 billion Korean won) for the Port project with a preferential interest rate of 0.15 percent per annum for non-consulting services and zero percent for consulting services.

The loan has a maturity period of 40 years, inclusive of a 10-year grace period.

The Philippines, for its part, will provide a counterpart fund of USD26.09 million (about PHP1.4 billion or 28.9 billion Korean won) for the project. (PR)