The Market Monitor Minding the Nation's Business
National Treasurer Roberto B. Tan signed recently the $100.13-million loan agreement for the Panguil Bay Bridge Project, with Chief Representative Yongkeun Oh, who signed on behalf of the Export-Import Bank of Korea-Economic Development Cooperation Fund (Kexim-EDCF).
The signing is the first bridge infrastructure project of Kexim-EDCF, accelerating growth in Mindanao with reliable and efficient transport infrastructure connecting the island’s northern and western areas.
The loan will finance the construction of a 4.19-kilometer bridge across Panguil Bay, connecting the Tangub City in Misamis Occidental and the Tubod municipality 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 said, “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, [but also] 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 percent per annum for non-consulting services and 0 percent per annum for consulting services, for a total maturity of 40 years, inclusive of a 10-year grace period.
Before signing the loan agreement, Tan said, “With the steadfast support we have from our development partners and neighbors, we are able to fund the [country’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,” he added.
Previously, at the same event at the Bureau of the Treasury, Foreign Affairs Secretary Jose Rene Almendras signed the Individual Arrangement with South Korean Ambassador Kim Jae-shin, who signed on behalf of the South Korean government.