ILOILO CITY — The much-anticipated 32.47-kilometer Panay–Guimaras–Negros (PGN) Island Bridge project remains on track despite recent controversies surrounding a suspended South Korean loan, a top official of the Department of Economy, Planning and Development Western Visayas (DEPDev-6) said.
DEPDev-6 Director Arecio Casing Jr. assured the public that the multibillion-peso infrastructure initiative is moving forward as scheduled.
“We still proceed as planned… It is still a go,” Casing said on Monday.
Casing added that they expect the final submission of the project’s detailed engineering design (DED) in October this year. The DED is being undertaken by a consortium of South Korean consulting firms led by the Yooshin Engineering Corp.
“Within the fourth quarter of this year, we expect the final submission of the DED, and they will proceed with the procurement activities,” Casing said.
Casing also revealed that the budget for the PGN Bridge is now pegged at P300 billion, covering two major sections: Section A connecting Panay and Guimaras, and Section B linking Guimaras to Negros.
“Until the final DED will come out, that is where we are,” he said, noting that the final cost breakdown for each section is still pending until the completion of the DED.
Casing clarified that recent reports linking South Korea’s suspension of a proposed P28.7-billion loan to the Philippines are unrelated to the PGN Bridge.
“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.
South Korean President Lee Jae-myung recently ordered the immediate suspension of the proposed loan 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.
The interisland bridge’s main financing source is the Official Development Assistance loan under South Korea’s Economic Development Cooperation Fund (EDCF), 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 is expected to cost P57.7 billion, with South Korea committing over $1 billion through EDCF.
Section B, estimated at P109.76 billion, will secure financing agreements following the start of construction on Section A.
In October 2024, the Philippines and the South Korean government signed a memorandum of understanding affirming cooperation on financing the bridge.
Construction on the Panay-Guimaras section is slated to begin in July 2026, with completion projected by June 2028. Work on the Guimaras-Negros section is scheduled to commence afterward, although a specific timeline has yet to be finalized.
