Philippines Secures Korean Funding for Dumaguete Airport and Nationwide Infrastructure
MANILA — The Department of Finance (DOF) and the Export-Import Bank of Korea (KEXIM) have entered into financing agreements to support the construction of the new Dumaguete Airport and various other infrastructure projects across the Philippines. The agreements, pivotal for advancing the country’s post-pandemic economic recovery, were finalized in Manila by DOF Secretary Ralph Recto and KEXIM’s Chairman and President Yoon Hee-sung.
According to Philippines News Agency, the new Dumaguete Airport, with a project cost of PHP 17.06 billion, is expected to significantly boost the local economy by increasing the airport’s capacity from 800,000 to 2.5 million passengers annually. The project will facilitate the introduction of international routes and expand the existing limited domestic flight operations. Recto emphasized that this development is crucial, especially given that Negros Oriental currently relies on only one major airport.
The new Economic Development Promotion Facility (EDPF), valued at USD 3 billion, will extend additional financing for the Marcos administration’s Build Better More Program, aiming to improve nationwide infrastructure. This includes roads, bridges, and disaster risk reduction initiatives. Projects considered for funding under this facility encompass significant undertakings like the Panay-Guimaras-Negros Island Bridges and various road and disaster management projects.
Recto highlighted the broad economic impacts expected from these initiatives, such as job creation, income boosts, and poverty reduction. He also committed to personally overseeing the projects to ensure they are completed on time. The financing terms for the Dumaguete Airport project include a highly concessional interest rate of 0.05 percent per year for non-consulting services, with a repayment period of 40 years that includes a 10-year grace period. The EDPF will offer financing with an indicative interest rate of 1.2 percent, repayable over 25 years and featuring a seven-year grace period.