DOTC invites Korean firms for P557-M airport project

Manila, Philippines - The Department of Transportation and Communications (DOTC) is eyeing large Korean firms to participate in the improvement of the air navigation system worth about P557 million at the Laguindingan Airport in Misamis Oriental.

Transportation Secretary Mar Roxas said the project would be funded by the Economic Cooperation Development Fund of the Republic of Korea through the state-owned Export-Import Bank of Korea.

Roxas said the airport development project is almost finished but the equipment including an improved instrument landing system, a Doppler radar, a communications system, an automated weather observation system, electrical works for the air navigation system, and aeronautical ground lighting system are still needed.

Roxas said about 90 percent of the civil works have been completed by the South Korea-based Yooshin Engineering Corp., the Schema Konsult, Inc., and the Hanjin Heavy Industries and Construction Co. Ltd.

Once opened, the DOTC chief said economic activity in the region would soar to new heights as the airport is envisioned to be a major trunkline air facility.

“This will be a major trading and tourist hub. Its operation would have a multiplier effect in the region, and this would mean more jobs for the people,” Roxas said.

The Laguindingan airport is eyed to be the main airport of Cagayan de Oro and Iligan cities in northern Mindanao, as a counterpart of the Davao international airport in Southern Mindanao. 

It is expected to help boost Mindanao’s potential as a national food basket being an exporter of the country’s major agricultural exports such as banana and coconut.

Korea Eximbank is eyeing further interest rate cuts to be extended under its concessional loan facility to proponents of major infrastructure projects under the public private partnership (PPP) scheme of the government.

Korea Eximbank chief representative of the Manila office Tae-ik Park earlier said in an interview said the bank recently revised the regulation for its Economic Development Cooperation Fund (EDCF) wherein untied aid through PPP schemes would be given a further interest rate cut of 50 percent.

The bank oversees the operation of the official development assistance (ODA) program under the EDCF facility. Loans under the facility usually carry an interest rate of 0.15 percent per annum payable in 40 years inclusive of a 10-year grace period.