The Department of Finance said Aug. 7 that it secured financing agreement for the new Dumaguete Airport Development Project from the government of Korea, of about P13.15 billion.
With total cost of P17.06 billion, about P13.15 billion of which is supported by KEXIM, or the Export-Import Bank of Korea, the new Dumaguete airport project covers 197.55 hectares of land development in the municipality of Bacong, Negros Oriental, to construct a new airport facility that complies with domestic and international standards for operational safety and efficiency, the DOF said.
“The new airport will enhance our capacity to welcome a surge of tourists in the post-pandemic era. With the new Dumaguete airport, we anticipate accommodating up to 2.5 million passengers per year, up from just 800,000,” Finance Secretary Ralph Recto said in a statement.
“From serving limited domestic flights, we can now open the door to international routes,” he stressed at the exchange of notes and signing ceremony on the project Aug. 7, attended by Dumaguete Mayor Felipe Antonio Remollo, Bacong Mayor Lenin Alviola, executives of KEXIM, and officials of the Department of Transportation, National Economic and Development Authority, and Department of Foreign Affairs, among others.
Recto said the project is envisioned to enhance the tourism and trade potential, economic activities, and standard of living in Negros Oriental. “The necessity for a bigger and more modern airport is undeniable, especially considering that Negros Oriental currently has only one major airport.”
The financing for the new Dumaguete Airport project carries very concessional terms, with interest rates of 0.05 percent per year for non-consulting services, to be repaid in 40 years, inclusive of a 10-year grace period, the DOF said.
Remollo, meanwhile, discussed with DOTr Secretary Jaime Bautista the city’s pending request for the expansion of the terminal and runway of the present airport, while waiting for the full operation of the new airport.
Aside from Dumaguete, Recto also emphasized that the government is looking at upgrading more regional airports in the country to ensure that the fruits of growth and modernization reach every island in the archipelago.
“We are making sure that no destination is left behind,” he stressed.
Recto also highlighted that the USD 3-billion new Economic Development Promotion Facility (EDPF) from KEXIM will serve as an additional financial bridge for realizing the Marcos administration’s Build Better More Program.
“The facility we have signed today with South Korea will enable us to deliver more infrastructure projects nationwide, from roads and bridges to disaster risk reduction efforts,” he said.
One project in the pipeline being considered for possible funding assistance under the new EDPF is the Panay-Guimaras-Negros Island Bridges, the DOF added. ||
