JICA extends supplemental loan for New Bohol Airport

MANILA, Philippines — The Department of Finance (DOF) and the Japan International Cooperation Agency (JICA) yesterday sealed a ¥4.376-billion (P2.1-billion) supplemental loan agreement to help fund the second phase of the New Bohol Airport Project.

The financing deal was signed by Finance Secretary Carlos Dominguez and JICA chief representative Yoshio Wada, with Transportation Secretary Arthur Tugade and Makoto Iyori, economic affairs minister of the Embassy of Japan, as witnesses.

Both parties also formally exchanged documents for the Phase II of the New Bohol Airport Construction and Sustainable Environmental Protection Project in Panglao Island.

“I thank the government of Japan for extending funding support for the second phase of the New Bohol Airport project. This project will have a substantial impact on the economic performance of Central Philippines,” Dominguez said during the ceremonial signing.

Wada, for his part, said the airport project will “accelerate the economic growth of Bohol and contribute to its transformation as another key economic center in the region.”

According to Dominguez, the new loan from JICA is supplemental to the ¥10.782 billion (P5.18 billion) extended by Japan for the project via a loan agreement signed in 2013.

The first funding agreement covered the construction of the new airport, which began in 2015, and included sustainable tourism development and the improvement of on-site water disposal.

Meanwhile, the supplemental loan signed yesterday will cover the extension of the runway to 2,500 meters from the current 2,000 meters, which will enable the airport to accommodate large commercial aircraft for international flights.

It also covers the expansion of the passenger terminal building to 13,300 square meters from 8,500 square meters to address problems of congestion that may arise from increasing tourism arrivals in the province.

The second 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.

Dominguez also said the signing of the deal was a result of the “fast and sure” approach adopted by Manila and Tokyo in the implementation of big-ticket infrastructure projects.

He said the Philippine government acted swiftly in processing the necessary requirements for the loan, which took only four months to be formalized.

“Under government conditions, this is amazing speed. I look forward to this becoming the benchmark of efficiency for the other projects in the pipeline,” he said.