ADB's airport loan to RP

ADB's airport loan to RP

MANILA (AFP): The Asian Development Bank (ADB) has approved a US$41 million loan to the Philippines to upgrade an airport in the major southern city of Davao, the Manila-based lending institution said yesterday.

The European Investment Bank is co-financing the project with a $31.3 million loan.

The government is hoping the project will enhance the southern center's business, finance, tourism and trade links with contiguous areas of Brunei, Indonesia and Malaysia which the four countries are promoting as a growth corridor, an ADB statement said.

The 25-year loan will have an interest rate based on the ADB's pool-based variable lending rate, currently at 6.68 percent per annum.

It comes with a $592,000 technical assistance grant for advisory services to help the government in the project to improve airport infrastructure, enhance aviation safety and remove infrastructure constraints, among others.