P8.8B KOREAN LOAN FOR CONSOLACION PROJECT
There should be unity and alignment of all stakeholders in supporting priority projects of the government.
Glenn Soco, Regional Development Council in Central Visayas infrastructure development committee head, made this call amid the P8.8 billion loan granted by the South Korean government for the P10.1 billion Cebu International Container Port project in Consolacion town .
“We need all stakeholders to be aligned to support this project and all other priority projects that have been endorsed and already consistent to the masterplan. We will fully support this, and we are confident that this will be implemented in this administration,” Soco said in an online interview on Wednesday.
He said that the new international port project would complement the proposed Mandaue-Consolacion-Liloan Bypass Road project.
“We need this project as it will complement the growth and urbanization of Metro Cebu. Our existing ports are congested already and needs to be relocated to be more attuned to the current and future business and development landscape of Cebu,” he said.
The new international container port project in Cebu secured financing from South Korea on the sidelines of President Duterte’s state visit, the Department of Finance (DOF) said Tuesday in an Inquirer report.
In a statement, the DOF said that the Philippine and South Korean governments signed last Monday the $172.6-million or about P8.8 billion loan agreement for the upcoming Cebu International Container Port.
According to the DOF, the loan will be slapped with a preferential interest rate of 0.15 percent per annum for non-consulting services, with a zero rate for consulting services.
Its 40-year maturity period included a 10-year grace period.
“Aside from the construction of physical structures, the loan also covers the procurement of cargo handling equipment and consulting services,” the DOF said.
Finance Secretary Carlos G. Dominguez III signed the agreement on behalf of the Philippine government, while Export-Import Bank of Korea chair Sung Soo Eun represented the South Korean side during ceremonies witnessed by President Duterte as well as South Korea President Moon Jae In.
The $199.3-million port will rise on a 25-hectare tract of reclaimed land in Consolacion town, according to the DOF.
“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,” the DOF added.
Dominguez told reporters in a text message Monday night that the commitment for official development assistance from South Korea was doubled to $1 billion in the next five years until 2022 from $500 million during the period 2011 to 2013.
Also, the South Korean government “indicated that they will help in the Marawi rehabilitation as soon as the plans are finalized” by Task Force Bangon Marawi Chair Eduardo D. Del Rosario, Dominguez added./With Correspondent Jessa Mae O. Sotto