Korean loan
‘very generous’

The Cebu Port Authority(CPA) yesterday disclosed that the construction of the new Cebu International Bulk and Container Port(CIBCP) in the municipality of Consolacion will start by July with an estimated cost of P10.361 billion.
CPA General Manager(GM) Angelo Verdan in an interview with Daily Tribune said the “first step is for Department of Transportation (DOTr)/CPA to appoint a Korean consulting company from a shortlist of companies accredited by the Korean government through the Republic of Korea Export-Import Bank.”
Finance Secretary Carlos Dominguez III said he and Export-Import Bank Korea Chairman and President Sung-Soo Eun signed a loan agreement worth $172.64 million for the construction of the new Cebu International Container Port which were witnessed by President Rodrigo Duterte and South Korean President Moon Jae-in last June 4 during the President’s visit to South Korea.
Verdan added that “once appointed, the consulting firm shall undertake the detailed engineering design of the project. It shall also submit a list of qualified Korean contractors to the DOTr/CPA which shall appoint the appropriate contractor/s for each phase of the project.”
He said the consultant is targeted for appointment next month. “Allow six to nine months for bidding,selection of contractors including evaluation period,” he said.
Dominguez described South Korea’s loan to the project as “very generous”, noting that the Philippines could easily afford to pay it back once the port is constructed.
“The interest rate on this $172 million is 0.15 percent and it is payable over 40 years with a ten-year grace period,” Dominguez said.
Verdan said the $172,641 shall be financed with a loan from the Korean Export-Import Bank while the $ 26,609 (P1.4 billion) component will be financed by the Republic of the Philippines through the DOF.
The port shall be constructed on 25 hectares of land to be reclaimed off the shores of Tayud, Consolacion.
The construction period is 35 months after contractors have been selected.