P72M Supplemental Loan for Landfill approved by sangunian

Olongapo City Sanggunian Reso & Ordinances

‎2011 R - 138 - A Resolution Authorizing the Honorable City Mayor James Gordon, Jr. to Negotiate, Secure, Enter, Execute and Sign an Agreement and Necessary Instruments for a Supplemental Loan of Seventy Two Million and Five Hundred Thousand Pesos with the Development Bank of the Philippines to Address the Additional Costs for the Sanitary Landfill Development Program Brought About by the Recent Collapse/Landslide in the Existing Open Dumpsite Due to Typhoon Pedring in a Manner Consistent with Law.

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DBP earmarked P383.3M for the development of Olongapo's Sanitary Landfill

Olongapo City will finally have its own Sanitary Landfill.

A loan Signing Ceremony was held at City Hall on Wednesday, 7 September 2011, between City Officials led by Mayor James Gordon, Jr. and the Development Bank of the Philippines (DBP) led by Executive Vice President Jesus S. Guevarra II.

Earlier, DBP Sr. Asst. Vice President Rebecca G. Reyes informed Mayor Gordon, in a letter, that the bank has approved the city's loan application for P383.30M, which shall be broken down, as follows: P195.50M for Landfill Development & Construction; P31M for Sanitary Landfill Equipment; P20M for Material Recovery Facility (MRF) Composting Facility; P30M for MRF Composting Equipment; and, P106M for purchase of 6,500 Mobile Garbage Bins.

According to Reyes, the funds will be available within 360 days upon perfection of loan documents.

Republic Act 9003 has banned open dump sites in the country since 2005 and the Department of Environment & Natural Resources (DENR) has issued closure orders on all local government units (LGU). To date, however, only a handful of LGUs have their own Sanitary Land Fills.

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

Japan, RP sign 19.4-B Japanese yen ODA loan for infrastructure projects

The government of Japan extends 7.604 billion yen (approximately 3.011 billion pesos) for the Pinatubo Hazard Urgent Mitigation Project (Phase III). The project, which will be implemented by the Department of Public Works and Highways (DPWH), will support the overall recovery efforts in Central Luzon from the damage caused by the Mt. Pinatubo eruption in 1991. The project constitutes a part of the Subic-Clark Development Initiative—a program promoted by the Philippine Government to develop the area as a logistic hub of the Asian regional economy.

Japan, RP sign 19.4-B Japanese yen ODA loan for infrastructure projects

Japanese Ambassador to the Philippines Makoto Katsura and Undersecretary of Foreign Affairs Rafael Seguis signed and exchanged notes on two Japanese ODA loan projects, namely, the "Pinatubo Hazard Urgent Mitigation Project (Phase III)" and the "Agrarian Reform Infrastructure Support Project (Phase III)" on December 3, 2007 at the Department of Foreign Affairs in Pasay City.

These ODA projects reaffirm Japan's commitment to support the Philippine Government's efforts in disaster prevention and management as well as poverty alleviation in the rural areas. The signing and exchanging of notes officially marked the appropriation of 19.406 billion yen (approximately 7.685 billion pesos) for these two projects.

The government of Japan extends 7.604 billion yen (approximately 3.011 billion pesos) for the Pinatubo Hazard Urgent Mitigation Project (Phase III). The project, which will be implemented by the Department of Public Works and Highways (DPWH), will support the overall recovery efforts in Central Luzon from the damage caused by the Mt. Pinatubo eruption in 1991. The project constitutes a part of the Subic-Clark Development Initiative—a program promoted by the Philippine Government to develop the area as a logistic hub of the Asian regional economy. Japan has already been actively engaged in rehabilitation around Sacobia-Bamban and Pasig-Potrero rivers in Phases I and II. However, the problem remains in the Porac-Gumain river basin which is still clogged by mud flow caused by the eruption, adversely affecting the surrounding region during flood disasters. The Phase III project will include construction of drainage facilities, dikes and roads in order to mitigate possible future damages of inundation, to facilitate the flow of goods and to improve sanitation in the region.

The Agrarian Reform Infrastructure Support Project (Phase III), worth 11,802 billion yen (approximately 4.673 billion pesos) on the other hand, will focus on poverty reduction and increased livelihood opportunities in the rural areas nationwide through the Comprehensive Agrarian Reform Program, which is supervised by the Department of Agrarian Reform (DAR).

Since 1995, Japan has supported the Philippine Government's efforts towards achieving agrarian reform through various projects under ARISP I and II and has continuously assisted agrarian reform beneficiaries in more than 220 agrarian reform communities throughout the country. The major component of the Phase III project involves enhancement of infrastructure such as small-sized irrigation facilities, setting-up of market information centers for inter-community cooperation and other initiatives that will improve productivity, capability and livelihood of farmers; thus enhancing self reliance of agrarian reform communities.

Both projects are expected to contribute to the development of targeted communities and further strengthen the partnership for comprehensive cooperation between Japan and the Philippines. Japan is the Philippines' largest source of ODA with assistance ranging from grants and loans to technical cooperation and development studies. (COJ Davao-PIA

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

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.

By Elaine Ruzul S. Ramos - Manila Standard Today