‘IT IS STILL A GO’: PGN Bridges pegged at PHP 300 billion; construction to push through amid Korea loan gaffe

By Rjay Zuriaga Castor

The construction of the 32.47-kilometer Panay–Guimaras–Negros (PGN) Island Bridges, now estimated to cost PHP 300 billion, will proceed as planned, contrary to earlier reports that it might be affected by South Korea’s suspension of a proposed loan to the Philippine government.

Arecio A. Casing Jr., director of the Department of Economy, Planning, and Development in the Philippines’ Western Visayas (DEPDev-6), said the Department of Public Works and Highways (DPWH) Unified Project Management Office (UPMO) has confirmed that the project remains on track.

“We still proceed as planned […] It is still a go,” he said on Monday, Oct. 6.

He said they are still waiting for the submission of the detailed engineering design (DED) from the consultants this October, and the DED is being undertaken by a consortium of South Korean consulting firms led by the Yooshin Engineering Corporation.

“Within the fourth quarter of this year, we expect the final submission of the DED, and they will proceed with the procurement activities,” he said.

Casing revealed that the cost of the PGN bridge is now pegged at PHP 300 billion, covering both major sections: Section A (Panay–Guimaras) and Section B (Guimaras–Negros).

“Until the final DED comes out, that is where we are,” he said, noting that there is no breakdown yet as to the cost of each section.

The inter-island bridge’s main financing source is an official development assistance loan under South Korea’s Economic Development Cooperation Fund, administered by the Export-Import Bank of Korea (KEXIM).

Initial reports indicate that the actual construction of the two bridge segments is expected to be financed through KEXIM.

Section A has an indicative cost of PHP 57.702 billion, and the Korean government has pledged over USD 1 billion from the EDCF for this segment.

The civil works for Section B have an indicative cost of PHP 109.76 billion, and while it is part of the overall Korean funding plan, the specific loan agreement for this segment is expected to be finalized after the construction of Section A begins.

In October 2024, the Philippines and the South Korean government signed a memorandum of understanding to affirm cooperation on financing the bridge.

Casing cited the Bataan–Cavite Interlink Bridge (BCIB) project as a parallel initiative that has drawn strong international interest, and the construction of the 32.15-kilometer bridge is scheduled to start before the end of 2025.

South Korean companies have been actively involved in engineering and consultancy contracts, such as Pyunghwa Engineering Consultants Ltd., a South Korean firm that is part of the joint venture awarded the engineering design contract.

South Korean firms are also participating in the project as part of joint ventures bidding for construction contracts, and one notable consortium is the joint venture between POSCO Engineering & Construction and the Philippine contractor Sta. Clara International Corp.

“[The BCIB], which is quite similar to the PGN bridge, is also a 30-kilometer bridge […] In a sense, we are hopeful that PGN Bridge will follow soon,” Casing said.

NO WITHDRAWAL OF SUPPORT

Casing clarified that there has been no withdrawal of support from the South Korean government for the inter-island bridges.

“I believe the report given by some sectors in society is related to a different project, and I think it is a project that did not even materialize. There are no loans regarding that nature,” he added.

The DEPDev-6 director was referring to South Korean President Lee Jae-myung’s recent order to immediately suspend the proposed loan of about PHP 28.7 billion to the Philippines due to risks of corruption and fraudulent practices linked to ongoing anomalous flood control projects.

The loan was intended for an infrastructure project to build around 350 modular steel panel bridges in rural areas.

However, the Department of Finance has stated that no such loan currently exists and clarified that the government stopped pursuing the funding last year.