Sokor, Philippines ink P4.2 B loan for Panguil Bay Bridge

MANILA, Philippines - South Korea and the Philippines yesterday signed a P4.2-billion loan to finance the construction of a bridge that will connect two provinces in Mindanao.

The Panguil Bay Bridge project is a 4.19-kilometer bridge to be built across Panguil Bay, connecting Tangub City in Misamis Occidental with Tugob town in Lanao del Norte.

Upon completion, travel time between Tangub and Tubod will be reduced to just seven minutes from the current 2.5 hours, the Department of Budget and Management (DBM) said in a statement.

“Increased connectivity and mobility in Mindanao ought to spur more inclusive economic activity, ensuring we get an exponential amount of return for the investment...,” National Treasurer Roberto Tan said separately.

Under the agreement, a total of $100.13 million or P4.27 billion will be lent by the Export-Import Bank of Korea- Economic Development Cooperation Fund from next year to 2019.

The loan carries a 0.15 percent interest per annum with a term of 40-years.

The Philippine government will provide counterpart funding amounting to P586.63 million sourced from the budget of the Department of Public Works and Highways (DPWH) beginning this year.

Based on DBM data, DPWH will spend P44.44 million this year, P23.87 million next year, P180.97 million in 2018 and P337.34 million in 2019.

The budget this year will “cover the cost of land acquisition, administrative support and payment of government taxes,” the DBM 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,” Finance Secretary Cesar Purisima said.

“The Panguil Bay Bridge Project not only connects two points in Mindanao; it connects us to an optimistic future for Mindanao’s growth and prosperity,” Purisima said.

The DBM said discussions on the project started back in 2014.