Port welcomes $172.64M aid
The Cebu Port Authority welcomes the recent loan approval of $172.64 million that will be used for the New Cebu International Container Port Project in Barangay Tayud, Consolacion.
"CPA welcomes the good development as the project can finally move forward," said CPA Deputy General Manager Ping Uckung.
The $172.64 million is part of the $1 billion worth of assistance from the South Korean government.
Presidential spokesperson Harry Roque Jr. made the announcement during a press briefing in South Korea on the sidelines of President Rodrigo Duterte’s official visit there.
He was joined by Finance Secretary Carlos Dominguez III and Trade Secretary Ramon Lopez.
In a statement released by the Presidential Communications and Operations Office, Roque said South Korea offered to double its ODA from $500 million to $1 billion to the Philippines in support of the administration’s “Build, Build, Build” program.
In a separate report released by the Philippine News Agency, Dominguez said the million loan South Korea granted to the Philippines for the construction of the proposed New Cebu International Container Port is “very generous”.
He said the Philippines can afford to pay it back easily once the port is constructed and operational
“The interest rate on this 172 million US dollars is 0.15 percent and it is payable over 40 years, ten years grace period,” Dominguez said in a press conference in Seoul.
“So it is very, very generous of the Korean government. And certainly we can afford this kasi (because), you know, when they put the port we will be charging port charges and goods will flow more quickly, traffic will be lessened in Cebu so it’s really beneficial for us. And the loan is very, very, very cheap,” he added.
Dominguez said the agreement between the two countries was signed on Monday, June 4, and was witnessed by Duterte and South Korean President Moon Jae-in.
The new port, Dominguez said, is a container port, which will increase the operational capacity of the main cargo way in Cebu.
Moreover, it will help alleviate the road congestion in the Cebu$172.64 based port area and provide a more efficient and reliable transport infrastructure to enhance the flow of goods and services in the Visayas.
Dominguez vowed to maximize the amount and keep it free from corruption.
CPA General Manager Angelo Verdan said earlier the new port will make Cebu a new landscape of port facility service that can cater to bulk carrier and giant cargo vessels.
Verdan said the new port can accommodate vessels that carry 2,000 20-footer container vans.
Once completed, the new port will help decongest the volume of container vans at the current 12-hectare Cebu International Port.
The current international port has a controlling draft of only 9.5 meters at mean lowlow water (MLLW), while the new port will have about 12 meters to 14 meters.