South Korea and the Philippines have signed a $172.64m loan agreement for the construction of an international container port in the Philippine province of Cebu.
Finance Secretary Carlos Dominguez III on behalf of the Philippine government and Sung-Soo Eun, chairman and president of the Export Import Bank of Korea (KEXIM) signed the agreement in the presence of President Duterte and South Korea President Moon Jae during the Philippine leader’s visit to South Korea.
The container port is intended to free up existing seaport in the Cebu province in the Philippines and provide a reliable and efficient transport infrastructure for the flow of goods and services in the Visayas.
The new Cebu International Container Port, with an estimated project cost of $199.25m, will be built on a 25-hectare reclaimed land in the town of Consolacion in Cebu.
The port will include a berthing facility with a 500-metre quay wall that can simultaneously accommodate two 2,000 TEU vessels; operating facilities and structures for containers such as a freight station and inspection shed; access road and bridge; and a dredged waterway and turning basin.
The loan also covers the procurement of cargo-handling equipment and consulting services.
The Export Import Bank of Korea - Economic Development Cooperation Fund (KEXIM-EDCF) will provide $172.6m for the port project with a preferential interest rate of 0.15% per annum for non-consulting services and 0% for consulting services.
The loan has a maturity period of 40 years, inclusive of a 10-year grace period.
The Philippines will provide a counterpart fund of $26.09m for the project.
The Department of Science and Technology and the Ministry of Science and Information and Communications Technology of Korea also signed a MoU on scientific and technological cooperation; and the Department of Transportation (DOTr) and Ministry of Land, Infrastructure, and Transport of Korea signed a MoU on cooperation in the field of transport.