June 19, 2011, BusinessWorld
THE CENTRAL BANK has approved a $13.3-million loan from the Export-Import Bank of Korea (Korea EXIM) to be used to buy navigation aids and train personnel for the Laguindingan International Airport in Cagayan de Oro City.
“We have approved the $13.3-million loan from Korea EXIM for the Laguindingan airport support facility supply of DoTC (Department of Transportation and Communications),” Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. told reporters last Friday night.
“The project aims to procure facilities like navigational equipment and will also be used for personnel training,” he added.
The 40-year loan will carry an annual 0.1% interest and will have a grace period of 30.5 years, Mr. Tetangco said further.
“This new loan is a highly concessional loan,” he said. “It will augment previous…loans worth $21.2 million approved in 1998 — which is fully drawn and outstanding as of March 2011 — and another loan approved in 2008 worth 7.6 billion Korean won which is partly drawn.”
The Laguindingan Airport Development Project (LADP) is designed to provide a new trunkline airport that will be compliant with international standards.
The operation and management of the airport is one of the projects under the government’s public-private partnership program that are planned to be auctioned off this year.
Started in January 2008, LADP, being undertaken by the DoTC with Hanjin Heavy Industries and
