Japan okays P6.8-billion loan for development of Subic Bay port

The Japanese government has approved a P6.8-billion loan out of the Special Yen Loan Package, otherwise known as the Obuchi Fund, to finance the implementation of the Subic Bay Port Development Project.

The project will be a vital component of the so-called Subic-Clark Alliance, a plan that will link the facilities of the Subic Bay Freeport and the Clark Special Economic Zone and develop the zones into a global intermodel transpark. The loan contract was signed in Japan by Subic Bay Metropolitan Authority (SMBA) chairman Felicito Payumo and Governor Hiroshi Yasuda of the Japan Bank for International Cooperation (JBIC).

The project will involve the construction of a new container terminal at the Cubi Point area within the Subic Bay Freeport, with a berth length of 560 meters and a berth depth of 13 meters.

It will also rehabilitate the existing port facilities at the Naval Supply Depot and Boton areas, as well as construct an access road from the Boton area to the new container terminal.

Payumo said the loan will likewise finance the installation of new navigational aids and the acquisition of gantry cranes as well as other cargo handling equipment.

Under the agreement, Payumo said SBMA as the borrower had been granted a 40-year payment period with a 10-year grace period at 0.95 percent interest per annum.

The loan is part of a ¥34.723-billion Special Yen Loan Package that bankroll a series of development projects in the country. Payumo said the Subic port project was given the largest funding among the various projects applied for funding under the Japanese loan facility.

The port development project was a result of a study conducted by Japan International Cooperation Agency (JICA) which was requested by the Philippine government to draw up a long term master plan for the Subic-Clark Alliance.