PH secures P17.4 billion loan from China for Samal-Davao bridge project

The Philippine government secured a P17.4 billion loan from China for the Samal Island-Davao City Connector Project.

Finance Secretary Carlos Dominguez III and Chinese Ambassador Huang Xilian exchanged loan documents on June 13, 2022, marking it as the Duterte administration's first official development assistance loan denominated in Chinese renminbi.

This concessional loan, amounting to 2.3 billion renminbi, will cover 90% of the P19.3 billion design-and-build contract for the 3.86-kilometer bridge.

The bridge will be a two-way, four-lane connector linking Samal Island to Davao City.

The loan has a 2% annual interest rate and is payable in 20 years, including a 7-year grace period.

The Department of Public Works and Highways has entered into an agreement with China Road and Bridge Corporation for the construction.

The project is expected to significantly cut travel time between Davao City and Samal Island and reduce dependency on ferry services.