DOF and Korea ink deals for Dumaguete Airport and other infra projects

On Wednesday, Secretary Ralph Recto of the Department of Finance (DOF) and Yoon Hee-sung, Chairman and President of the Export-Import Bank of Korea (KEXIM), formalized financing agreements for key infrastructure projects, including the new Dumaguete Airport Development Project and the Economic Development Promotion Facility (EDPF).

The signing took place at the DOF office in Manila.

“The new Dumaguete Airport will significantly boost our ability to handle increased tourist arrivals in the post-pandemic era. We expect the airport to accommodate up to 2.5 million passengers annually, a substantial increase from the current 800,000. This expansion will also allow us to introduce international flights, enhancing connectivity,” Recto stated during the ceremony.

The Dumaguete City Airport project, with a total cost of PHP17.06 billion, will receive PHP13.15 billion in support from KEXIM. The project involves developing 197.55 hectares in Bacong, Negros Oriental, to build a state-of-the-art airport meeting both national and international safety and efficiency standards. This development is anticipated to boost tourism, trade, and overall economic activity in the province.

“The need for a larger and more modern airport is clear, particularly since Negros Oriental currently has only one major airport,” Recto added.

In addition, the newly established USD3-billion EDPF will provide crucial funding for the Marcos administration’s Build Better More Program.

“This agreement with South Korea will facilitate the advancement of numerous infrastructure projects across the country, including roads, bridges, and disaster risk reduction initiatives,” Recto explained.

Potential projects for EDPF funding include the Panay-Guimaras-Negros Island Bridges, the Consolacion-Liloan Bypass Road Project, the Lapu-Lapu Coastal Road Project, and the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation Project Phase II.

Recto emphasized that these infrastructure improvements will not only enhance mobility but also create jobs, stimulate business growth, increase incomes, and reduce poverty.

“We are committed to closely monitoring these projects to ensure their timely completion,” he assured.

The financing for the Dumaguete Airport project features concessional terms, with a 0.05% annual interest rate for non-consulting services, repayable over 40 years with a 10-year grace period. Meanwhile, projects funded through the EDPF will have an indicative interest rate of 1.2%, with a 25-year repayment period and a seven-year grace period.