March 11, 2008 [ Manila Bulletin Online ]
The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas (BSP), has approved three loans for the government infrastructure program worth $ 164.8 million.
The BSP has given its final approval to the $ 99.2-million (11.8 billion yen) Agrarian Reform Infrastructure Project 3 of the Japan Bank for International Cooperation (JBIC); the $ 65.5-billion (7.6 billion yen) JBIC loan to the Pinatubo Hazard Urgent Mitigation Project 3; and the $ 73,000 (70.95 million Korean won) credit facility given by the Export Import Bank of Korea (KEXIM) to the Laguindingan Airport Development Project.
The two Japanese ODA loans were signed December last year. The agrarian reform loan aims to increase agricultural productivity and raise the income level of farmers by supporting development of basic infrastructure, including small-scale irrigation facilities, as well as strengthening local communities, including water users’ associations in Agrarian Reform Communities (ARCs) across the country.
In the meantime the Pinatubo financing will support infrastructure development, including improvement of drainage facilities and rivers, as well as technical assistance, including formulation of disaster prevention and evacuation plans, in Central Luzon, which sustained devastating damage by the Mt. Pinatubo eruption in 1991.
For the Misamis airport development loan, KEXIM Bank and the Economic Development Cooperation Fund will provide a mixed credit facility.
KEXIM Bank will be providing the equivalent of 62.75 million won while the EDCF will be providing the equivalent of 8.2 million won.
