Home » Aviation, Ports/Terminals, Press Releases » PH gets P2B JICA loan to fund New Bohol Airport’s phase 2 development

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The Philippines’ Department of Finance (DOF) and Japan International Cooperation Agency (JICA) have signed an agreement extending a JPY4.376-billion (about P2.10 billion or US$40.61 million) loan to the Philippines to help fund the second phase of the New Bohol Airport project covering the expansion of its runway and passenger terminal building.

Finance Secretary Carlos Dominguez III and JICA chief representative Yoshio Wada signed on October 8 the supplemental loan agreement and formally exchanged documents for Phase II of the New Bohol Airport Construction and Sustainable Environmental Protection Project located on Panglao Island.

The finance chief said this project is “a perfect example” of a hybrid public-private partnership (PPP) project, in which the government takes over the initial phase of the project and later bids out its operations and maintenance to the private sector.

“If some future government or some future administration needs money, they can actually sell that asset. So while we can get good financing, we are building up our asset base. That’s like the savings of the people which can be tapped if some future administration needs it,” Dominguez said.

Through JICA, Japan also earlier provided funding support of JPY10.782 billion (about P5.18 billion or $237 million) for the first phase of the New Bohol Airport, which began construction in 2015. The New Bohol Airport has been dubbed the country’s first international “eco-airport”.

“This project will have a substantial impact on the economic performance of Central Philippines,” Dominguez said.

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

Transportation Secretary Arthur Tugade, who witnessed the signing, thanked the Japanese government and said the project “shows that if we can work together, then we can really accelerate things in a platform of being certain, in a platform of comfort and a platform of safety.”

The supplemental loan of JPY4.376 billion carries an interest rate of 0.1% per annum for non-consulting services and 0.01% per annum for consulting services. The maturity of the loan is 40 years inclusive of a 12-year grace period.

DOF said Japan’s funding support for the New Bohol Airport has helped ensure that the structure is environment-friendly and complies with domestic and international standards for operational safety and efficiency.

The project includes improvements on the on-site wastewater disposal system and support for sustainable tourism development.

The Department of Transportation (DOTr) said that with most of the work on the original project nearing completion, the ceremonial opening of this airport will likely happen later this year.

The second phase of the airport project covered by JICA’s supplemental loan will include extending the runway from the current 2,000 meters to 2,500 meters to enable the airport to accommodate large commercial aircraft, and expanding the passenger terminal building from 8,500 square meters (sqm) to 13,300 sqm in anticipation of the congestion that could arise should tourism traffic to the area rise faster than expected.

Using local funds, DOTr is planning to further enhance the capacity of the airport by extending the runway to 2,800 meters, constructing a separate cargo terminal and a parallel taxiway, and building a fuel depot plus a fuel hydrant system.

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