Business World, 14 September 2012
KOREAN businesses are interested in participating in the governmentâ€™s public-private partnership (PPP) projects, particularly for infrastructure, the Korean Chamber of Commerce Philippines said in an interview with reporters.
â€śThere is interest by Korean companies in infrastructure like airports and power plants including PPP projects,â€ť said Edward Eun-Gap Chang, president of the Korean Chamber, in an interview with reporters at the sidelines of the Joint Foreign Chambers networking night held late Thursday.
He added that Korean firms are also interested in setting up agricultural projects as well entering the renewable energy sector.
Korean firms were invited to bid for PPP projects by the Transportation department on July 12, particularly for the P557 million Laguindingan Airport in Misamis Oriental.
Only one PPP project has been awarded: the P1.956-billion Daang Hari-Southern Luzon Expressway Link Road won by Ayala Corp. on Dec. 15 last year.
Pre-qualification has finished for the P10.04-billion PPP for School Infrastructure Project, while an invitation to pre-qualify and bid for the P60-billion extension and management of Light Rail Transit Line 1 was published on June 4.
Mr. Chang noted that Korean firms like Korea Electric Power Co., Hanjin Philippines, Inc., Samsung Philippines and Hyundai Asia Resources, Inc. are interested in possibly expanding their operations in the country.
However, Mr. Chang said some projects â€śneed ownership of land and we are prohibited from doing that.â€ť
The Korean Chamber is also pushing for the establishment of a Korea-Philippines free trade agreement which it feels will facilitate the further growth of trade between the two countries.
â€śThere is no free trade agreement yet between the Philippines and Korea — between Korea and the ASEAN (Association of Southeast Asian Nations), yes, but we are willing to help promote bilateral agreements,â€ť said Mr. Chang.
â€śA bilateral agreement between Korea and the Philippines will allow the expansion of trade among certain goods,â€ť he added.
The chamber noted Korea is one of the top five trade partners of the Philippines as well as one of the biggest tourist groups that visit the country. –Â Emilia Narni J. David
13 July 2012, The Philippine Star
by Lawrence Agcaoili
Manila, Philippines – The Department of Transportation and Communications (DOTC) is eyeing large Korean firms to participate in the improvement of the air navigation system worth about P557 million at the Laguindingan Airport in Misamis Oriental.
Transportation Secretary Mar Roxas said the project would be funded by the Economic Cooperation Development Fund of the Republic of Korea through the state-owned Export-Import Bank of Korea.
Roxas said the airport development project is almost finished but the equipment including an improved instrument landing system, a Doppler radar, a communications system, an automated weather observation system, electrical works for the air navigation system, and aeronautical ground lighting system are still needed.
Roxas said about 90 percent of the civil works have been completed by the South Korea-based Yooshin Engineering Corp., the Schema Konsult, Inc., and the Hanjin Heavy Industries and Construction Co. Ltd.
Once opened, the DOTC chief said economic activity in the region would soar to new heights as the airport is envisioned to be a major trunkline air facility.
â€śThis will be a major trading and tourist hub. Its operation would have a multiplier effect in the region, and this would mean more jobs for the people,â€ť Roxas said.
The Laguindingan airport is eyed to be the main airport of Cagayan de Oro and Iligan cities in northern Mindanao, as a counterpart of the Davao international airport in Southern Mindanao.
It is expected to help boost Mindanaoâ€™s potential as a national food basket being an exporter of the countryâ€™s major agricultural exports such as banana and coconut.
Korea Eximbank is eyeing further interest rate cuts to be extended under its concessional loan facility to proponents of major infrastructure projects under the public private partnership (PPP) scheme of the government.
Korea Eximbank chief representative of the Manila office Tae-ik Park earlier said in an interview said the bank recently revised the regulation for its Economic Development Cooperation Fund (EDCF) wherein untied aid through PPP schemes would be given a further interest rate cut of 50 percent.
The bank oversees the operation of the official development assistance (ODA) program under the EDCF facility. Loans under the facility usually carry an interest rate of 0.15 percent per annum payable in 40 years inclusive of a 10-year grace period.
The projetct will infuse private sector efficiencies into the airport operation to provide higher service levels to passengers.
Department of Transportation and Communications (DOTC)
The private sector shall be engaged to operate and maintain the Â Laguindingan Airport in Misamis Oriental. Â DOTC is constructing the new airport in Misamis Oriental which includes airside civil works (runways, apron, taxiway, etc.) and air navigational facilities, landside building works and terminals (passenger and cargo terminals and other associated facilities) and all other facilities as per international Civil Action Organization (ICAO) standards.
USD 42.9 Million
Finalization of project structure ongoing.
ATTY. RENE K. LIMCAOCO
(+632) 725-0204 loc. 247
ATTY. JAIME RAPHAEL FELICIANO
Assistant Secretary, DOTC
MS. GERALDINE M. SANTOS
Project Manager, PPP Center
(+632) 990-0721 loc. 6203
*Approved PDMF Support