Korea Eximbank Approves $260 million for Bacong Airport Funding

8 August 2024

The Export-Import Bank of Korea said Wednesday that it will provide a $260 million loan grant to the Philippines to support the development of Bacong airport in Negros Oriental, Philippines.

Yoon Hee-sung, chairman and CEO of Eximbank, met with Ralph G. Recto, the secretary of the Philippine Department of Finance, in Manila on the day to sign the Economic Development Cooperation Fund loan agreement.

The project aims to establish a new airport in central Philippines with the capacity to handle 2 million passengers per year.

The EDCF provides long-term, low-interest loans to foster industrial growth and economic stability in developing countries while facilitating the global expansion of domestic companies. This loan represents the largest amount ever provided by the EDCF for a project in the Philippines.

Eximbank anticipates that this new project will enhance opportunities for domestic firms to engage in the Philippines' highly demanded aviation sector.

In addition, Eximbank signed a cooperation arrangement to offer $3 billion in Economic Development Promotion Facility support to the Philippines over the next five years. The EDPF is designed to fund large-scale infrastructure projects in developing nations.

Eximbank expects that the pre-established EDPF support limit and time frame will enable both countries to concentrate on identifying promising project candidates.

"This loan provision and cooperation arrangement will act as a basis for leveraging finance for landmark projects in the Philippines, and will serve as a stepping-stone for Korean firms to penetrate large-scale infrastructure construction markets," said Yoon.

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