Funds for P4.86-B project secured

The government has sealed a financing agreement for the P4.86-billion Panguil Bay Bridge Project, which will cut travel time between key areas in Northern Mindanao when it opens in 2018.

Separate statements from the Departments of Finance and Budget and Management outlined the funding for the 4.19-kilometer bridge, linking the City of Tangub in Misamis Occidental and the Municipality of Tubod in Lanao del Norte.

The DMB said the national budget would pony up P586.63 million for the project, while another P4.27 billion will come from a loan via the Export-Import Bank of Korea-Economic Development Cooperation Fund. The ceremonial loan deal signing was held on Thursday.

The Panguil Bay Bridge, being implemented by the Department of Public Works and Highways, is considered a major infrastructure undertaking in Northern  Mindanao.

It will also improve the travel time from Cagayan de Oro and Iligan to the cities of Tangub, Ozamiz, Oroquieta, Dipolog and Dapitan in Zamboanga de Norte.

Discussions on the Panguil Bay Bridge project started in 2014 through the Investment Coordination Committee (ICC) and the board of the National Economic and Development Authority.

Original funding was pegged at P5 billion, but this was brought down to the present level after a review by the DPWH, the DBM said.

The loan is highly concessional, carrying an interest rate of only 0.15 percent a year for non-consulting services, for a total maturity of 40 years inclusive of a 10-year grace period.

“With the steadfast support we have from our development partners and neighbors, we are able to fund the Republic’s infrastructure investments at a lower, and much favorable premium,” National Treasurer Roberto B. Tan said in a statement.

“Increased connectivity and mobility in Mindanao ought to spur more inclusive economic activity, ensuring we get an exponential amount of return for the investment the Governments of the Republics of Korea and the Philippines put in with this loan agreement,” he added.