PH, South Korea to sign loan deal for new Cebu container port

Pia Ranada
PH, South Korea to sign loan deal for new Cebu container port

Malacañan Photo

The loan agreement for the New Cebu International Container Port is among 4 documents to be signed by the two governments during President Rodrigo Duterte's June 3 to 5 visit to South Korea

MANILA, Philippines – The Philippines and South Korea are expected to sign 4 documents, including a loan agreement for the Cebu International Container Port Project, during the upcoming visit of President Rodrigo Duterte to Seoul this month.

Foreign Undersecretary Ernesto Abella, former presidential spokesman, returned to the Malacañang briefing room on Friday, June 1, to give updates on the trip set to take place from June 3 to 5.

The 4 documents to be signed in the presence of Duterte and South Korean President Moon Jae-in are as follows:

  • Loan agreement on new Cebu International Container Port Project, between Department of Finance and Export-Import Bank of Korea 
  • Memorandum of Understanding on cooperation in the field of transportation between Department of Transportation and Ministry of Land, Infrastructure and Transport
  • MOU on scientific and technological cooperation between Department of Science and Technology and Ministry of Science, ICT and Future Planning
  • MOU on economic cooperation between Department of Trade and Industry and Ministry of Trade, Industry and Energy 

The Cebu International Container Port will sit on a 25-hectare reclaimed island in Consolacion, Cebu. Projected to cost P9.2 billion, it aims to decongest the existing Cebu International Port, which has surpassed its optimal yard utilization rate, according to the National Economic Development Authority.

South Korea had pledged in November 2017 to help finance the project through a loan of US$173 million (P8.6 billion).

It would be implemented by the DOTr and the Cebu Port Authority starting 3rd quarter of 2017 until the second quarter of 2020.

Meeting with Moon

During Duterte’s June visit, he and Moon will hold a bilateral meeting or summit to be followed by a joint press conference.

Topics that will likely be discussed, said Abella, include the 70th year anniversary of the start of diplomatic ties between the two countries in 2019 and Marawi’s rehabilitation.

South Korea donated US$100,000 to the Philippine Red Cross for relief efforts in Marawi.

The two will also discuss economic cooperation, specifically better access to the South Korean market for Philippine exports of ocra, avocado, and tropical fruits.

Abella also said both parties will discuss initiatives for cooperation on environmental protection. – Rappler.com

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Pia Ranada

Pia Ranada is a senior reporter for Rappler covering Philippine politics and environmental issues. For tips and story suggestions, email her at pia.ranada@rappler.com.