As Gov't approves $71.6 Million PPS Airport Project
September 13, 2012
The government of the Philippines through Finance Secretary Cesar V. Purisima has signed an agreement with South Korea represented by Chairman and President Yong Hwan Kim of Korea's Export-Import Bank for a $71.6-million loan to construct the new Puerto Princesa airport terminal project under Seoul’s Economic Development Cooperation Fund (EDCF) as Public-Private Partnership (PPP) projects falters in favor of the ODA financing recommended by Transport Secretary Mar Roxas. (Read our 2009 Story)
Puerto Princesa airport will have its runway expanded and new taxiway developed for the construction of a new and bigger passenger terminal building with gate facilities under the official development assistance (ODA), worth 3.3 billion pesos. The Government of the Philippines will shoulder the remaining 1 Billion Pesos as counterpart funds to be sourced in the GAA for the duration of the project.
A new ramp and control tower will also be constructed for the said project together with installation of navigational aids to accommodate increased domestic and international flights. A new access road will also be build to service the terminal which is expected to handle 3 million passengers.
The airport is a priority infrastructure project of the Aquino administration, in preparation for the increase tourists arrival in the city after Puerto Princesa Underground River basin was included as one of the New 7 Wonders of Nature.
The loan agreement will be payable in 40 years and with a 10-year grace period with an interest rate of 0.1%. Construction is expected to begin within the year for completion in 2015.
Engineering works was provided by Price Waterhouse and Cooper International.