12 July 2012, GMA News
To “help economic activity in the region soar to new heights”, the Department of Transportation and Communications is eyeing more Korean firms to participate in the P557 million improvement of the air navigation system at the Laguindingan Airport in Misamis Oriental.
The airport development project is almost finished, but still needs a Doppler radar, equipment for an improved instrument-landing system, a communications system, an automated weather-observation system, electrical works for the air-navigation system, and an aeronautical ground-lighting system, said DOTC Sec. Mar Roxas.
South Korea-based companies Yooshin Engineering Corp., SCHEMA Konsult, Inc., and Hanjin Heavy Industries and Construction Co. Ltd have completed about 90 percent of the civil works.
“This 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,” he added.
The airport is eyed to be the main airport of both Cagayan de Oro and Iligan cities in northern Mindanao. It will function as a counterpart to the Davao International Airport in Southern Mindanao.
Roxas cited the potential for the Laguindingan airport to boost Mindanao’s role as a national food basket as the region’s major agricultural exports are bananas and coconuts. The two agriculture products are Mindanao’s top exports.
He said the project is funded by the Economic Cooperation Development Fund, or ECDF, of the Republic of Korea through its state-owned Export-Import Bank of Korea, also known as Korea Eximbank.
Korea Eximbank
For its part, Korea Eximbank is eyeing further interest rate cuts to its loan facility to the Philippines.
The Philippines uses the loan to fund infrastructure projects, like the Laguindingan Airport, under the public private partnership scheme.
Korea Eximbank Manila office chief representative Tae-ik Park earlier said in an interview that the bank had recently revised its Economic Development Cooperation Fund regulations. Now, untied aid through PPP schemes shall be given a further interest rate cut of 50 percent.
Park pointed out that Korea Eximbank decided to further cut interest rates in order to support the Philippine government’s efforts to undertake much needed infrastructure projects and social services under the PPP program.
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.
Also, the Korean government has decided to increase this year’s EDCF to $1.2 billion to be expended in 49 countries.
Korea currently finances 16 projects in the Philippines, cumulatively worth $614 million. The projects are in line with the Philippine National Development Plan. — PDC/DVM, GMA News
