US$100.13 concessional loan is KEXIM-EDCF’s pioneer project to boost Mindanao infrastructure
28 April 2016—On behalf of the Government of the Republic of the Philippines, National Treasurer Roberto B. Tan signed the US$ 100.13 million loan agreement for the Panguil Bay Bridge Project today, with Chief Representative Yongkeun Oh signing on behalf of the Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF).
The signing kicks into motion the first bridge infrastructure project of KEXIM-EDCF, accelerating growth in Mindanao with reliable and efficient transport infrastructure connecting the northern and western areas. The loan will finance the construction of a 4.19 km bridge across Panguil Bay connecting the City of Tangub in Misamis Occidental and the Municipality of Tubod in Lanao del Norte. The Department of Public Works and Highways (DPWH) will serve as the implementing agency of the project, scheduled to be completed in 2018.
Finance Secretary Cesar V. Purisima spoke of the signing saying, “We appreciate the robust partnership we share with the Republic of Korea—this project is the latest evidence we have of friends from abroad placing their faith on our people. The Panguil Bay Bridge Project not only connects two points in Mindanao; it connects us to an optimistic future for Mindanao’s growth and prosperity.”
The loan is highly concessional, carrying an interest rate of only 0.15% per annum for non-consulting services and 0.0% per annum for consulting services, for a total maturity of 40 years inclusive of a 10-year grace period.
Treasurer Tan remarked before signing the loan agreement, “With the steadfast support we have from our development partners and neighbors, we are able to fund the Republic’s infrastructure investments at a lower, and much favorable premium.”
“Increased connectivity and mobility in Mindanao ought to spur more inclusive economic activity, ensuring we get an exponential amount of return for the investment the Governments of the Republics of Korea and the Philippines put in with this loan agreement,” Tan added.
Previously, in the same event at the Bureau of the Treasury, Foreign Affairs Secretary Jose Rene Almendras signed the Individual Arrangement with Korean Ambassador Jae-shin Kim signing on behalf of the Government of the Republic of Korea.
