$13 Million Navaid for Laguindingan Airport Approved

June 20, 2011

The Bangko Sentral ng Pilipinas (BSP) has approved a $13.3-million loan from the Export-Import Bank of Korea to bankroll the acquisition of navigational equipment for the long delayed Laguindingan airport development project in Misamis Oriental.

BSP Governor Amando M. Tetangco Jr. told reporters that the Monetary Board has approved the loan from Eximbank of Korea for the Laguindingan airport navigational system and support facility.

Eximbank of Korea operates the Economic Development Cooperation Fund or the Korean official development assistance program and the Inter-Korean Cooperation Fund or an economic cooperation program with North Korea

Tetangco said the project is being undertaken by the Department of Transportation and Communications (DOTC).

Laguindingan Airport is located in Misamis Oriental in Mindanao and would replace the Cagayan de Oro airport in the Cagayan-Iligan Corridor. It would serve the growth corridor covering the provinces of Bukidnon, Misamis Oriental, Lanao del Norte, Lanao del Sur, and the island province of Camiguin.

Tetangco said the project would address the increasing demand for air transportation in the region.

The loan, he explained, is payable in 40 years and carries an interest of 0.15 percent per annum.

The BSP chief pointed out that the new loan approval would help augment the previous loans approved as early in 1998 and the latest in 2008.

The first loan agreement amounting to $62.75 million for the Laguindingan Airport Development Project was signed February of 1998.

The project involves the construction of a new airport, including a new runway, taxiway, apron and other similar facilities; new buildings such as passenger terminal building and cargo facilities; and air navigation and support facilities and other airport equipment and vehicles.

The airport is being constructed on a 400-hectare property in Laguindingan of which about 90 hectares was donated by property giant Ayala Land Inc.

In December of 2007, a supplemental loan agreement of $8.2 million was signed by the Philippines and Eximbank of Korea that would be funded through the Economic Development Cooperation Fund (EDCF) for the Laguindingan Airport.

The supplemental loan was approved by the BSP in 2008.

The Laguindingan airport has been in the planning board since early 1900s.

The total development cost was estimated at $167 million. Contracted for the project was Hanjin Industries Construction Co. Ltd. of Korea.

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