THE Korean Export-Import (Exim) Bank has agreed to extend some $71.61 million for the Puerto Princesa Airport Development Project (PPADP) through an agreement with the national government signed last week.
The Korean Exim Bank and the Philippine government signed the minutes of discussion (MOD), which confirmed the discussion between the Philippines and the appraisal mission. MOD will form part of a report by the Korean Economic Development Cooperation Fund (EDCF) that would be submitted to the Korean government for further processing of the loan.
“The project aims to improve transport accessibility, efficiency and sustainability in Palawan; contribute to ongoing poverty reduction efforts, and support the Philippine government’s peace and development efforts in the region. The project is proposed for implementation from 2009 to 2013,” the National Economic and Development Authority (Neda) said in a statement.
The Neda said that based on the Korea Exim Bank’s appraisal, the project will cost some $92.1 million, or P4.4 billion, based on an exchange rate of P47.4 to the dollar.
Of the amount, around $71.61 million, or 78 percent, of the project cost is proposed to be sourced from Korean Exim Bank, while some $20.5 million, or 22 percent, will be the Philippine government’s counterpart fund.
Approved by the Investment Coordination Committee early this year, the PPADP involves the redevelopment of the existing Puerto Princesa Airport to be compliant with the International Civil Aviation Organization standards.
The project will involve the construction of a new passenger terminal with facilities to accommodate increased domestic passengers and international flights. It will also involve the construction of a new access road and provision of navigational aids, among others.
The Neda also said the Department of Transportation and Communications and the Korean Exim Bank also signed the procurement arrangement (PA) for the PPADP.
The PA covers information on arrangements for procurement for the contract packages, disbursement schedules and measures to ensure successful implementation of the project, among others.
The MOD were signed by Transportation Undersecretary Doroteo Reyes II, Neda Deputy Director General Rolando Tungpalan, OIC-Undersecretary Rosalia de Leon of the Department of Finance, and Chae-hwan Lim, operations chief for the EDCF Operations Division of the Korean Exim Bank.