RP, Japan ink P17-B loan pact for Clark-Subic road

By Tonette Orejas - Inquirer

MANILA, Philippines—The Philippines will sign on Monday a 17.1-billion yen or P7.18-billion supplemental loan agreement with Japan to finance the completion of the Subic-Clark-Tarlac Expressway (SCTEx) project.

The agreement will be signed by Bases Conversion and Development Authority (BCDA) president and chief executive officer Narciso Abaya and officials of the Japan Bank for International Cooperation (JBIC).

Abaya said he had obtained authority from President Gloria Macapagal-Arroyo to sign the agreement.

The BCDA has also received the approval of the Monetary Board and the exchange of notes between the Japanese government and the Department of Foreign Affairs.

On Thursday, Japanese Ambassador Makoto Katsura and Foreign Secretary Alberto Romulo signed and exchanged notes for the supplemental loan at DFA headquarters in Pasay City.
With the supplemental loan, the total SCTEx project cost has reached 59 billion yen (approximately P24.7 billion).

“With an interest rate of 0.95 percent per annum and a 40-year repayment period with a 10-year grace period, this yen loan provides the most concessional terms among various funding sources,” the Japanese Embassy said in a statement.

The BCDA provided the 15-percent counterpart fund, it added.

Abaya said the supplemental loan would cover the shortfall of the original loan worth 41.9 billion yen, pay for the price increases in construction materials, and the cost of building two interchanges in Pampanga and an interchange and an access road to Clark.

Negotiations with HTN and the Kajima Corp., Obayashi Corp., JFE Engineering Corp. and Mitsubishi Heavy Industries Ltd. (KOJM) Joint Venture, which built the Subic-Clark portion, for the additional work will start in the second week of April.

“We will tap the same contractors since the interchanges and the access roads are variations,” Abaya said.

The Porac and Floridablanca interchanges will be built by KOJM while the Clark South Interchange and Panday Pira access road will be undertaken by HTN.

The road will be connected to the Clark North Interchange to provide direct access to the freeport