Department of Finance (DOF) Secretary Ralph Recto and the Export-Import Bank of Korea (KEXIM) signed financing agreement for the new Dumaguete Airport Development Project.
The agreement was signed by Recto and KEXIM Chairman and President Yoon Hee-sung at the DOF office in Manila on Wednesday, August 7.
“The new airport will enhance our capacity to welcome a surge of tourists in the post-pandemic era. With the new Dumaguete airport, we anticipate accommodating up to 2.5 million passengers per year, up from just 800,000. From serving limited domestic flights, we can now open the door to international routes,” Recto said during the exchange of notes and signing ceremony.
With a total project cost of P17.06 billion, some P13.15 billion of which will be supported by KEXIM, the new Dumaguete City Airport project covers 197.55 hectares of land development in the municipality of Bacong, Negros Oriental, to construct a new airport facility that complies with domestic and international standards for operational safety and efficiency, the DOF said.
The project is expected to enhance the tourism and trade potential, economic activities, and standard of living in the province, it said.
“The necessity for a bigger and more modern airport is undeniable, especially considering that Negros Oriental currently has only one major airport,” Recto said.
The financing for the new Dumaguete Airport project carries concessional terms, with interest rates of 0.05 percent per year for non-consulting services, to be repaid in 40 years, inclusive of a 10-year grace period.*PNA