RP road project gets P6.8-b loan
Japan Bank for International Cooperation has approved a P6.782-billion supplemental loan to state-owned Bases Conversion Development Authority to finance the P21-billion Subic-Clark-Tarlac Expressway project.
BCDA president Narciso Abaya said the loan would carry a much-lower interest financing of only 0.95 percent.
“We want to maximize the proceeds of this loan since it will impact on the toll fees for SCTEx [Subic-Clark-Tarlac Expressway],” Abaya said.
The financing charges on the loan component of the project would be factored into the toll fees for the use of the expressway.
Abaya said about P3 billion of the proceeds from the supplemental loan would cover price escalation costs, while another P3 billion would cover contingencies.
The 93.77-kilometer, four-lane tollway project is composed of Package 1, which covers the 50.5-km Subic-Clark section, and Package 2 that involves the construction of 43.27-km Clark-Tarlac portion. The project is 85 percent financed by JBIC.
Once completed, the new expressway will reduce travel time to about 30 minutes from Clark to Subic, and 20 minutes from Clark to Tarlac.
Arlene Zosa, vice president for business development and officer-in-charge of operations, said that even with the approval of the loan, the agency would still tap commercial banks for a combined P4-billion loan to serve as interim financing until the agency could draw on the concessional loan.
The agency will soon sign a P4-billion loan facility with the Development Bank of the Philippines, Land Bank of the Philippines and Metropolitan Bank and Trust Co.
Zosa said it would take about six months before the agency could draw down on the JBIC loan. In the interim, the commercial loan would finance escalation costs on construction materials used.
China reportedly had been siphoning off bulk of the global supply of construction materials, making them more expensive.
“The commercial loan facility would address the price escalation costs on the project while the JBIC loan has yet to be drawn,” Zosa said.
Once the Japanese loan became available, the agency would immediately pay down the P4 billion it owed to commercial banks.
The agency also has a P1-billion standing loan from Banco de Oro. The loan, however, would carry a higher interest financing at 9 to 10 percent.
BCDA president Narciso Abaya said the loan would carry a much-lower interest financing of only 0.95 percent.
“We want to maximize the proceeds of this loan since it will impact on the toll fees for SCTEx [Subic-Clark-Tarlac Expressway],” Abaya said.
The financing charges on the loan component of the project would be factored into the toll fees for the use of the expressway.
Abaya said about P3 billion of the proceeds from the supplemental loan would cover price escalation costs, while another P3 billion would cover contingencies.
The 93.77-kilometer, four-lane tollway project is composed of Package 1, which covers the 50.5-km Subic-Clark section, and Package 2 that involves the construction of 43.27-km Clark-Tarlac portion. The project is 85 percent financed by JBIC.
Once completed, the new expressway will reduce travel time to about 30 minutes from Clark to Subic, and 20 minutes from Clark to Tarlac.
Arlene Zosa, vice president for business development and officer-in-charge of operations, said that even with the approval of the loan, the agency would still tap commercial banks for a combined P4-billion loan to serve as interim financing until the agency could draw on the concessional loan.
The agency will soon sign a P4-billion loan facility with the Development Bank of the Philippines, Land Bank of the Philippines and Metropolitan Bank and Trust Co.
Zosa said it would take about six months before the agency could draw down on the JBIC loan. In the interim, the commercial loan would finance escalation costs on construction materials used.
China reportedly had been siphoning off bulk of the global supply of construction materials, making them more expensive.
“The commercial loan facility would address the price escalation costs on the project while the JBIC loan has yet to be drawn,” Zosa said.
Once the Japanese loan became available, the agency would immediately pay down the P4 billion it owed to commercial banks.
The agency also has a P1-billion standing loan from Banco de Oro. The loan, however, would carry a higher interest financing at 9 to 10 percent.
By Elaine Ruzul S. Ramos - Manila Standard Today
Labels: abaya, bcda, japan, jbic, loan, sctep, subic clark expressway
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