Korea Eximbank to Finance the Proposed P9.19 Billion New Cebu International Container Port

One of the largest financial institutions in the Korean Peninsula, the Korea Eximbank (KEXIM) has approved the financing package for the proposed New Cebu International Container Port in Consolacion, Cebu which is worth an estimated P9.19 billion projected cost.

The financing of the South Korean bank was confirmed by Philippine Finance officials during an event featuring the Department of Finance who announced the selection of Korean project financing.

KEXIM is the official credit agency of the government of South Korea, it conducts appraisal, conclusion of loan agreements, disbursement therefrom, and evaluate economic development aid projects in developing countries.

According to Finance Secretary Carlos Dominguez III the selection of the New Cebu International Container Port for financing by South Korea's export credit agency was based on its internal rate of return, among others.

The highly anticipated project under the Duterte administration will be built in the village of Tayud in Consolacion, Cebu. It has a projected cost of around P9.19 billion, P7.96 billion of which is up for official development assistance (ODA) funding while share of the Philippine government was set at P1.23 billion.

The Department of Finance also announced that the new port terminal project in Cebu is among the priority projects of the Duterte administration and will be constructed in a 25-hectare reclaimed area in Consolacion, Cebu.

The project also include the construction or improvement of 1,450 meters of inland road and construction of a 300 linear meter offshore bridge that will connect the port to the shoreline.

The NCIC Port project was received and approved by the inter-agency Investment Coordination-Technical Board (ICC-TB) on Sept. 1, 2016, the ICC-Cabinte Committee (ICC-CC) on Sept. 28, 2016 and the National Economic and Development Authority (NEDA) Board on Nov. 14, 2016.

KEXIM has offered to finance $1 Billion worth of infrastructure projects of the Philippine government under the administration of Pres. Rody Duterte. Asec Maria Edita Tan of the DOF said they were currently conducting feasibility studies for several projects targeted to be presented for possible KEXIM financing.

Some projects under the Duterte administration which could be finance by KEXIM include the development of Marine Aids to Navigation in Luzon and Visayas, the new Dumaguete Airport Development Project, the Development of Hybrid Power Generation Systems in the country, the establishment of Mindanao-Multi-Grain Processing Center, Development of the National Animal Identification and Traceability System, the Drive-Through Portal Inspection Facilities in International Ports of Entry and the Automated Collection of Slaughter Data and Issuance of Meat Inspection Certificates.

The DOF Asec also said that all these additional projects had no ICC approval yet.

Source: PIA

Korea Eximbank to Finance the Proposed P9.19 Billion New Cebu International Container Port Korea Eximbank to Finance the Proposed P9.19 Billion New Cebu International Container Port Reviewed by Phil Newsome on 7/06/2017 Rating: 5

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