BCDA signs P4-b loan deal to fund Subic-Clark road
State-owned Bases Conversion and Development Authority has signed a P4-billion loan agreement to finance the agency’s equity counterpart in the 93.7-kilometer Subic-Clark-Tarlac Expressway project.
The BCDA secured the P4-billion syndicated term loan facility from Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Co. and First Metro Investment Corp.
The loan forms part of the counterpart funding of BCDA, equivalent to 21 percent of the total cost of the toll road project estimated at P30.826 billion.
A special yen loan of P24.294 billion from the Japan Bank for International Cooperation is funding 79 percent of the project cost. BCDA is obliged to come up with the balance of P6.532 billion as counterpart funding.
BCDA president and chief executive Narciso Abaya said it would have been better to finish the project without drawing from standby credit lines and using the special loan from JBIC instead.
But with the strengthening of the peso against the Japanese yen in recent months, Abaya said BCDA was receiving less proceeds from the JBIC loan.
The loan, he added, was a “vote of confidence” by the partner-banks on the viability of the project as well as on BCDA’s sound financial and project management.
LandBank under the agreement will serve as the loan agent responsible for monitoring BCDA’s compliance on representation and warranties and facilitating the payment of interest and principal to lenders.
The National Economic and Development Authority in September approved a supplemental loan worth 18 billion yen, or roughly P6.725 billion, to fund mainly the price escalation of the toll road project due to the increase in construction materials.
The road project is 91 percent complete as of Nov. 14. The Subic-to-Clark segment (Package 1) is 88 percent complete, while the Clark-to-Tarlac phase (Package 2) is 96 percent done.
By Elaine Ruzul S. Ramos - Manila Standard Today
The BCDA secured the P4-billion syndicated term loan facility from Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Co. and First Metro Investment Corp.
The loan forms part of the counterpart funding of BCDA, equivalent to 21 percent of the total cost of the toll road project estimated at P30.826 billion.
A special yen loan of P24.294 billion from the Japan Bank for International Cooperation is funding 79 percent of the project cost. BCDA is obliged to come up with the balance of P6.532 billion as counterpart funding.
BCDA president and chief executive Narciso Abaya said it would have been better to finish the project without drawing from standby credit lines and using the special loan from JBIC instead.
But with the strengthening of the peso against the Japanese yen in recent months, Abaya said BCDA was receiving less proceeds from the JBIC loan.
The loan, he added, was a “vote of confidence” by the partner-banks on the viability of the project as well as on BCDA’s sound financial and project management.
LandBank under the agreement will serve as the loan agent responsible for monitoring BCDA’s compliance on representation and warranties and facilitating the payment of interest and principal to lenders.
The National Economic and Development Authority in September approved a supplemental loan worth 18 billion yen, or roughly P6.725 billion, to fund mainly the price escalation of the toll road project due to the increase in construction materials.
The road project is 91 percent complete as of Nov. 14. The Subic-to-Clark segment (Package 1) is 88 percent complete, while the Clark-to-Tarlac phase (Package 2) is 96 percent done.
posted by OlongapoCity Zambales at
10:27 AM
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