Signing Ceremonies
New Bohol Airport Construction and
Sustainable Environmental Protection Project
Phase II
October 8, 2018
I thank the Government of Japan for extending funding support for the second phase of the New Bohol Airport project. This project will have a substantial impact on the economic performance of Central Philippines.
The New Bohol Airport, also known as the Bohol-Panglao International Airport, was initially supported by a loan agreement signed in 2013. Under this agreement, the Government of Japan extended funding support amounting to Y10.782 billion, or P5.18 billion.
Using this funding, we built the New Bohol Airport at Panglao that is compliant with domestic and international standards for operational safety and efficiency. Even as we installed a large facility in a small island, great care was taken to protect the environment. The funding support included sustainable tourism development and the improvement of on-site wastewater disposal.
The funding for the second phase amounting Y4.376 billion (about P2.1 billion) is supplemental to the previous agreement signed in 2013 with generous terms granted by the lender. It carries an interest rate of 10 basis points, which is 0.1 percent per annum, for non-consulting services and 1 basis point, which is 0.01 percent per annum, for consulting services. It has a maturity of 40 years inclusive of a 12-year grace period.
This supplemental loan will cover the extension of the runway from 2,000 meters to 2,500 meters. This will enable the airport to accommodate large commercial aircraft.
This also covers expansion of the passenger terminal building from 8,500 square meters to 13,300 square meters. This anticipates problems of congestion that may arise astourism traffic in the area will rise quickly in the near future.
Using local funds, the Department of Transportation is planning to further enhance the capacity of the airport by extending the runway from 2,000 meters to 2,800 meters and constructing a cargo terminal building, parallel taxiway, and a fuel depot with a fuel hydrant system.
Work on this project, as originally designed, started on June 22, 2015. With much of the work on the original project nearing completion, we expect to ceremonially open this airport sometime in November.
Let me take this opportunity to talk about the “Fast and Sure” approach we have taken regarding our key strategic infrastructure projects as supported by the people of Japan.
In the case of this supplemental loan, the Philippine Government went through all the approval processes within four months. The NEDA Board approved this supplemental loan on June 19, 2018. Today, we are signing the Loan Agreement. Under government conditions, this is amazing speed.
I look forward to this becoming the benchmark of efficiency for the other projects in the pipeline. If we act with the same dispatch on all public projects, I am confident we will sustain the pace of growth we need to bring the benefits of inclusive growth to our people.
Thank you and good day.
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