South Korea Funded $172.64 –million Cebu Container Port Project

Manila, June 11 (Engineering Daily) -- On Monday (June 4, 2018), the Philippines and South Korea signed a $172.64 million loan agreement for the construction of a new international container port in Cebu. This project  aims to free up the existing seaport in the province and provide a more efficient and reliable transport infrastructure for the continous flow of goods and services in the Visayas.
 
Finance Secretary Carlos Dominguez III on behalf of the Philippine government and Sung-Soo Eun, chairman and president of the ​ Export Import Bank of Korea(KEXIM) signed the agreement,  witnessed by
President Rodrigo Duterte and South Korea President Moon Jae-in. This agreement  was among the five agreements signed during the Philippine leader’s official visit.
 
Total estimated project cost of the new Cebu International Container Port is P10.1 billion (approximately $199.25 million) and will be built on a 25-hectare reclaimed land in the town of Consolacion in Cebu.
 
It will include a berthing facility with a 500-meter quay wall length that can simultaneously accommodate two 2,000 TEU (Twenty-foot Equivalent Unit) vessels; operating facilities and structures for containers such as a freight station and inspection shed; an access road and bridge; and a dredged waterway and turning basin.
 
Aside from the construction of physical structures, the loan also covers the procurement of cargo handling equipment and consulting services.
 
Export-Import Bank of Korea will extend the amount of $172.641 million (approximately P8.8 billion or 186.97 billion Korean Won) for the Port project with a preferential interest rate of 0.15 percent per annum for non-consulting services and zero percent for consulting services.
 
The loan has a maturity period of 40 years inclusive of a ​10-year grace period.
 
The Philippines, for its part, will provide a counterpart fund of $26.09 million (about P1.4 billion or 28.9 billion Korean Won) for the project.