THE Philippines’ Department of Finance (DOF) and Japan International Cooperation Agency (Jica) on Tuesday, June 16, signed loan agreements for two high-impact infrastructure projects under the Duterte administration’s Build Build Build program.
Jica is extending 119.225 billion yen (roughly P56 billion) for the Cebu-Mactan Bridge and Coastal Road Construction Project and 34.83 billion yen (around P17 billion) as supplemental loan for the second phase of the Davao City Bypass Construction Project (II).
Jica will also provide a grant to finance the detailed engineering design for the 4th Cebu bridge. The amount of grant is still under negotiation, DOF officials said.
The 4th Cebu-Mactan bridge project is the biggest infrastructure project in the Visayas under the Build Build Build program so far, Finance Secretary Carlos Dominguez III said.
“With a total cost of P76.4 billion or about 169 billion Japanese yen, it will create jobs in the Queen City of the South and dramatically improve movement of goods and people,” he said.
The Jica loan will fund more than 75 percent of the total financing needed for this project. Dominguez said the balance will be financed domestically.
The project will connect Cansaga Bay in Mandaue City to Barangay Ibo in Lapu-Lapu City on Mactan Island. The components are a 3.3-kilometer four-lane bridge and a 4.9-kilometer four-lane coastal road that will become part of the proposed Metro Cebu circumferential road.
Travel time between the Mactan Cebu International Airport on Mactan Island to the Cebu International Port on mainland Cebu will be reduced to 27 minutes from the current 44 minutes, Dominguez said.
This project is expected to break ground in 2021 and targeted to be completed in 2029.
The Davao City bypass project, meanwhile, involves the construction of a 45.5-kilometer four-lane bypass road that will connect Barangay Sirawan in Toril, Davao to Barangay JP Laurel in Panabo City so as to mitigate traffic congestion.
Travel time between these two points will be reduced to only 49 minutes from the current one hour and 44 minutes via Maharlika Highway.
Another component is a 2.3-kilometer mountain tunnel that will connect Barangay Matina Biao and Barangay Waan. This will cut travel time to less than five minutes from the current 44 minutes.
Construction will start this year. The facility is targeted to be operational by 2023.
Dominguez signed the loan agreements for the Philippines while Eigo Azukizawa, Jica chief representative in the Philippines, signed for Japan.
Azukizawa said the two projects will introduce new construction technologies and facilitate technology transfer.
“We also envision that both projects would contribute to sound urban development of Metro Cebu and Metro Davao, respectively,” Azukizawa said in a speech following the signing ceremony.
“In a broader sense, I hope that these projects would also contribute to the economic recovery of the country amidst the Covid-19 pandemic as we fully support your government’s pronouncement that restarting and accelerating the Build Build Build program should be one of the main strategies for reviving the Philippine economy,” he added.
Dominguez, for his part, said the government’s bounce-back program relies heavily on rapidly restarting the Build Build Build program because of its high multiplier effect and job generating potential.
“We are happy that two major projects facilitated by the Japanese people through the Japan International Cooperation Agency that were accelerated through high-level consultations will now be ready to break ground,” Dominguez said
“These are crucial components of the Build Build Build program that will help our economy bounce back from the adverse effects of this (coronavirus disease or Covid-19) crisis,” he added.
Both loan agreements carry an interest rate of one-tenth of 1.0 percent per annum for the non-consulting services and one-hundredth of 1.0 percent per annum for consulting services. Both loans are payable in 40 years, including a 12-year grace period. (Marites Villamor-Ilano/SunStar Philippines)