MANILA, Philippines — China has extended a 2.34-billion renminbi or around P17.39 billion to fund the construction of a bridge that would connect Davao City and Samal Island in Mindanao.
Finance Secretary Carlos Dominguez and Chinese Ambassador to the Philippines Huang Xilian have exchanged documents for the loan that would finance the project.
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“This will catalyze the region’s growth potential by enhancing mobility, easing access to tourism activities in Samal, and opening more opportunities for employment,” Dominguez said in a Twitter post on Monday evening.
Davao City’s economic prospects could only get better with this project. This will catalyze the region’s growth potential by enhancing mobility, easing access to tourism activities in Samal, and opening more opportunities for employment.
— Carlos Dominguez III (@SecSonnySays) June 13, 2022
Dominguez said this would be the Duterte administration’s first renminbi-denominated loan from China. President Rodrigo Duterte’s term will end in almost two weeks.
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The almost P17.39-billion loan, which is payable within 20 years inclusive of a seven-year grace period, comes with a 2% per annum interest rate.
According to the Chinese Embassy in Manila, the project will be a two-way four-lane bridge spanning 3.86 kilometers.
Chinese foreign ministry spokesperson Zhao Lijian also noted that its construction would open employment opportunities for the local community.
China has been involved with the implementation of projects under the Duterte administration’s “Build, Build, Build” program, 16 of which has since been completed while 20 are still in the works. — Kaycee Valmonte