$71-M loan from Korea to fund Puerto Princesa airport upgrade

Loan proceeds will go to the construction of a new passenger terminal in Puerto Princesa, improvement of its airport runway and navigational facilities

MANILA, Philippines – The airport at Puerto Princesa, a key tourist destination in Palawan province, will receive funding from a Korean state-owned bank.

The Philippine government, through Finance Secretary Cesar Purisima, and the Export-Import Bank of Korea (KEXIM), through its Chairman and President Yong Hwan Kim, have signed a loan agreement for the implementation of the Puerto Princesa Airport Development Project.

The official development assistance (ODA) loan worth US$71.6 million was signed on August 23.

Under the loan agreement, the government of Korea, through KEXIM, will finance the improvement, rehabilitation and expansion of Palawan’s gateway airport.

The loan will also finance the construction of a new passenger terminal with facilities and a new access road, as well as the improvement of the runway and provision of navigational aid to accommodate more domestic and international flights.

The project, to be implemented by the Department of Transportation and Communications (DOTC), was originally part of the public-private partnership or PPP scheme of the Aquino administration. Under outgoing Transportation Secretary Mar Roxas, however, the airport project became an ODA project.

Korean loans

The $71.6-million loan is the second signed by the Philippine government and KEXIM this year.

In August, the parties signed a $207.88-million loan agreement for the Jalaur River Multipurpose Project Phase II of the National Irrigation Administration.

The Finance department said that since 1991, KEXIM has provided the Philippines with financing to support critical public infrastructure projects. – Rappler.com

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