China Finances ₱17.4B Loan for Davao-Samal Bridge

According to the Department of Finance (DOF), China is set to loan ₱17.4 billion for the construction of a bridge that will connect Samal Island and Davao City. 

The DOF Secretary, Carlos Dominguez III exchanged loan documents with the Chinese Ambassador to the Philippines, Huan Xilian last June 13. This loan to the Philippines will have an annual interest rate of 2%, to be paid in 20 years with a seven-year grace period. 

The Chinese-funded four-lane Davao-Samal bridge is expected to support an estimated 90% of the plan’s design-and-build contract which totals ₱19.3 billion. 

The DOF has stated that the planned bridge “will significantly cut travel time between Davao City and Samal Island, and reduce the dependency on ferry services.”

The DOF further added that “The Samal Island-Davao City connector project complements the Mindanao spatial strategy/development framework 2015-2045, the Davao regional development plan, and the Davao Gulf area development plan 2011-2030, which all aim to facilitate commerce and trade, generate jobs, create wealth among the local government units (LGUs) in Mindanao, and share the benefits of its growth to more remote municipalities, including Samal Island,”

The Department of Public Works and Highways (DPWH) previously contacted the China Road and Bridge Corp. to construct the bridge totaling over 3.9 kilometers. 

The outgoing Duterte administration has borrowed a total of $1.1 billion from the Chinese government. 

Other loans acquired by President Duterte’s administration include funding for the  New Centennial Water Source – Kaliwa Dam of Metropolitan Waterworks and Sewerage System,  the Philippine National Railways (PNR) south long-haul project of the Department of Transportation (DOTr), and the Chico River pump irrigation project of the National  Irrigation Administration (NIA).

Source: Inquirer