MANILA — State-run Development Bank of the Philippines (DBP) is set to finance the construction of the National Government Administrative Center (NGAC) inside the New Clark City in Central Luzon.
On Tuesday, the PHP9.5-billion loan agreement was signed by executives of DBP and MTD Philippines, the local arm of NGAC’s Malaysia-based partner, MTD Capital Berhad. The state-owned Bases Conversion and Development Authority (BCDA) has partnered with the Malaysian investment holding firm for the development of a 220-hectare government center located north of Metro Manila.
The project will be undertaken through MTD’s infrastructure arm AlloyMTD.
The signing of the loan agreement was led by DBP Chairman Alberto Romulo, DBP President and Chief Executive Officer Cecilia Borromeo, MTD Philippines Chairman Isaac David, and MTD Philippines President Patrick Nicholas David.
DBP Board has approved the financing program for the project last March, after the Philippine Competition Commission gave its go-signal for the joint venture between the BCDA and MTD.
“With this loan agreement, a world-class facility will soon rise at New Clark City. The modern metropolis will be the next growth driver in Luzon and will serve as a premiere center of economic growth, true to BCDA’s mandate,” said BCDA President and CEO Vivencio Dizon.
The MTD Philippines’ president noted that the PHP9.5-billion financing from DBP accounts for 75 percent of the budget requirement to construct the Phase 1-A of NGAC.
In an interview in Kuala Lumpur last March, David said the construction of NGAC Phase 1-A will cost around PHP13.7 billion, of which the company intends to source the PHP9.5 billion from bank financing and the remaining requirement will be through equity.
The Phase 1-A will rise in NGAC’s 40-hectare development site. There will be seven structures under Phase 1-A, including one government office building, government housing and two sports facilities for the hosting of the Southeast Asian (SEA) Games next year.
The developer aims to deliver the initial phase of the project by October 2019, while targeting the Phase 1-B to be finished by December 2021. The entire NGAC project is expected to cost some PHP121.8-billion until completion.