Extension sought for P9-B loan for Mindanao airports

CAGAYAN DE ORO CITY — The Mindanao Economic Development Council (MEDCo), chaired by Presidential Assistant for Mindanao Jesus Dureza, has recommended to President Arroyo to immediately undertake measures necessary to sustain the airport development projects in Mindanao.

Dureza’s recommendations also included streamlining the processing of documents at the Department of Transportation and Communications (DOTC) by setting up field offices.

He made the recommendations after learning that a P9-billion loan from the Asian Development Bank (ADB) and the European Investment Bank is set to expire by the end of this month.

The Third Airports Development Project covers the upgrading of key Mindanao airports, particularly those in the cities of Dipolog, Pagadian, Cotabato, Butuan and Puerto Princesa in Palawan, and Sanga-Sanga in Tawi-Tawi.

Noting the importance of the project to Mindanao’s development, President Arroyo immediately directed the DOTC, the National Economic and Development Authority (NEDA) and the Department of Finance to negotiate with the ADB and the European Investment Bank for a three-year loan extension for the Third Airports Development Project.

"The decision of the President to order a negotiation with the ADB is a crucial move to avert further stalling or possible suspension of the project," Dureza said.

"We have agreed with the local governments concerned to meet regularly with the DOTC, NEDA and the Department of Budget and Management to monitor the progress of the projects at this critical time," he added.

Work on the Third Airports Development Project was originally scheduled to start in December 2001, but the hiring of design and engineering consultants was delayed, and land acquisition progressed at a very slow pace. — Bong Fabe