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Philippines secures $173m Korea loan for new Cebu port project

Following Philippines President Rodrigo Duterte’s visit to South Korea, a $172.6m loan agreement has been signed for the construction of the $199.3m Cebu International Container Port (CICT), local reports cited the Department of Finance (DOF) as saying.

Vincent Wee, Hong Kong and South East Asia Correspondent

June 6, 2018

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Export-Import Bank of Korea (KEXIM) will provide a low interest, 40-year loan for the major port project. The loan will carry an interest rate of 0.15% per annum for non-consulting services and will include a 10-year grace period. The Philippines will put up around $26.1m of the project cost.

The new container terminal will be built on 25ha of reclaimed land in the northern part of Cebu in the central Visayas region of the Philippines. It is meant to relieve some of the pressure from congestion at the current Cebu International Port nearer to Cebu City as well as boost connectivity in the central and southern regions.

Read More: ICTSI sells stake in Cebu container terminal

The port is expected to handle more international container traffic and according to a feasibility study done by KEXIM consultants, will be designed with berth space to handle two 2,000 teu vessels simultaneously and have a draft of 12m. CICT will also have yard space for 3,000 teu and a freight station and inspection shed.

Local reports at the beginning of the year said the construction jobs for the project were being processed to be opened for tender. No further details have been disclosed however.

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Container Terminals

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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