A P17.4 billion (RMB2.34 billion) Chinese loan to build a bridge connecting Samal Island and Davao City has been made official, as officials from China and the Philippines exchanged documents on Monday (June 13).
Finance Secretary Carlos Dominguez III and Chinese Ambassador to the Philippines Huang Xilian exchanged papers on the framework agreement and the loan agreement for the concessional loan to build the Samal Island-Davao City Connector. The documents were signed in May.
The proposed two-way, four-lane bridge is the result of an agreement between the Department of Public Works and Highways and China Road and Bridge Corporation.
The concessional loan covers 90 per cent of the financing requirements of the 3.86-kilometer bridge, which will cost P19.32-billion. The remaining cost will be shouldered by the Philippine government.
The loan has an interest rate of 2 per cent per annum. It is payable in 20 years, inclusive of a 7-year grace period.
It is the latest collaboration with the Chinese, with the Middle Kingdom's financing commitments to the Philippines now totalling $1.1 billion.
The other projects are the Chico River pump irrigation project, the Kaliwa Dam project and the project management consultancy of the Philippine National Railways South Long Haul project