The Governments of the Republic of the Philippines and Republic of Korea signed on 23 August 2012 a Loan Agreement to support the implementation of the Puerto Princesa Airport Development Project of the Department of Transportation and Communications (DOTC). Finance Secretary Cesar V. Purisima signed the Loan Agreement on behalf of the Philippine Government while Export-Import Bank of Korea (KEXIM) Chairman and President Yong Hwan Kim signed on behalf of the Republic of Korea.

Under the loan agreement, the Republic of Korea, through KEXIM will provide an ODA loan under the Economic Development Cooperation Fund amounting to US$71.612 million to finance the improvement and rehabilitation of the gateway airport of the Province of Palawan.

The Project will expand and develop the Puerto Princesa Airport through the construction of a new passenger terminal with facilities as well as the construction of a new access road, improvement of the runway and provision of navigational aids to accommodate increased domestic and international flights.

The Project is also expected to revitalize the transport and trade linkages under the Brunei Darussalam, Indonesia, Malaysia and the Philippines East ASEAN Growth Area (BIMP-EAGA) and boost tourism and economic growth in Puerto Princesa City as a Special Zone of Peace and Development (SZOPAD).

Since 1991, the KEXIM has provided the Philippine Government with highly concessional financing facilities to support critical public infrastructure projects.

This is the second loan agreement signed this year between the Export Import Bank of Korea and the Philippine Government following the US$207.88 million loan agreement dated 09 August for the Jalaur River Multipurpose Project Phase II of the National Irrigation Administration.