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The governments of the Philippines and Japan have signed a supplemental agreement extending a 4.376 billion yen (about P2.1 billion) loan to the Philippines to support the second phase of the New Bohol Airport Project, to cover the expansion of its runway and passenger terminal building. Carlos Dominguez, Department of Finance (DOF) secretary, and Yoshio Wada, Japan International Cooperation Agency (JICA) chief representative, yesterday signed the supplemental loan agreement and formally exchanged documents for Phase II of the New Bohol Airport Construction and Sustainable Environmental Protection Project in Panglao Island. Dominguez said the Philippine government acted swiftly in processing the necessary requirements for the supplemental loan, which from the time the National Economic and Development Authority Board approved it on June 19, up to the October 8 signing, took only a period of four months to be formalized. “Under government conditions, this is amazing speed,” Dominguez said after the signing of the supplemental loan accord. Dominguez thanked Japan for once again helping fund the second phase of the New Bohol Airport Project, which is also known as the Bohol Panglao International Airport. Dominguez said the project is a perfect example of a hybrid public-private partnership project in which the government takes over the initial phase of the project and later bids out its operation and maintenance aspect to the private sector. “If some future government or some future administration needs money, they can actually sell that asset. So while we can get good financing, we are building up our asset base. That’s like the savings of the people which can be tapped if some future administration needs it,” Dominguez said. Through JICA, Japan also provided funding support in the amount of 10.782 billion yen for the first phase of the New Bohol Airport, which began construction in 2015. Arthur Tugade, Department of Transportation (DOTr) secretary, who was also present in the event, thanked the DOF for ensuring that projects like the Bohol airport are thoroughly deliberated and properly funded. “This project shows that if we can work together, then we can really accelerate things in a platform of being certain, in a platform of comfort and a platform of safety,” Tugade said. The supplemental loan carries an interest rate of 0.1 percent per annum for non-consulting services and 0.01 percent per annum for consulting services. The maturity of the loan is 40 years inclusive of a 12-year grace period. With most of the work on the original project nearing completion, the DOTr said the ceremonial opening of the airport will likely happen later this year. The second phase of the airport project covered by JICA’s supplemental loan will include the extension of the runway from the current 2,000 meters to 2,500 meters to enable the airport to accommodate large commercial aircraft, and the expansion of the passenger terminal building from 8,500 square meters to 13,300 sq. m. |
