Active Development AidData Chinese Aid

China Eximbank provides RMB 2.34 billion government concessional loan for Samal Island-Davao City Connector Project

¥2.34M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of the Philippines
Country	Philippines
Start Date	May 31, 2022
End Date	Jul 22, 2027
Duration	1,878 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63257`

Grant Description

China Eximbank provides RMB 2.34 billion government concessional loan for Samal Island-Davao City Connector Project On October 29, 2018, the Chinese Government and the Government of the Republic of the Philippines signed letters of exchange regarding a feasibility study for the Samal Island-Davao City Connector Project.

The feasibility study was undertaken by Ove Arup & Partners Hong Kong Ltd.

On November 29, 2019, the National Economic and Development Authority (NEDA) Board confirmed the Investment Coordination Committee’s approval of the Samal Island-Davao City Connector Project.

Then on January 29, 2021, the Government of the Republic of the Philippines submitted a loan application to China Eximbank for the Samal Island-Davao City Connector Project. It submitted a revised application on April 26, 2021.

Approximately one year later, on May 31, 2022, China Eximbank and the Government of the Republic of the Philippines signed an RMB 2,340,814,593.53 government concessional loan (GCL) agreement [NO. GCL20220060763] for the Samal Island-Davao City Connector Project.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

The borrower is expected to use the GCL proceeds to finance 90% of the cost of a PHP 19,321,083,655 commercial contract [No. 20Z00008] between the Department of Public Works and Highways of the Government of the Republic of the Philippines and China Road and Bridge Corporation (CRBC), which was signed on January 4, 2021.

The purpose of the Samal Island-Davao City Connector Project is to provide a permanent road linkage between Davao City and the Island Garden City of Samal, thereby reducing travel time and dependency on ferry services.

The project will connect the Samal Circumferential Road in Barangay Limao, Island Garden City of Samal to Davao City in between R. Castillo-Daang Maharlika junction, crossing over Pakiputan Strait.

The project has an approximate length of 3.98km which involves the construction of i) a toll-free 4-lane extradosed bridge with an approximate length of 2.8 kilometers and a width of 24.2 meters; and ii) interchanges with the existing road network, local existing junction improvements, viaducts over sections of land, and approach bridges over the marine area.

China Road and Bridge Corporation (CRBC) is the contractor responsible for project implementation. An official project commencement ceremony took place on July 6, 2022.

Construction has experience delays due to ongoing issues related to Right-of-Way (ROW) acquisition, which has led to a delay in geotechnical investigation activities required for the Detailed Engineering Design (DED). As of July 22, 2024, bored piling works for the land viaduct were actively underway as part of the civil works.

DPWH noted that the project is progressing despite earlier right-of-way delays.

📋 Staff Comments

The loan (GCL) agreement can be accessed in its entirety via https://www.dropbox.com/s/sjutktlddzrfuwl/China%20Eximbank%20GCL%20agreement%20for%20the%20Samal%20Island-Davao%20City%20Connector%20Project.pdf?dl=0.
This project is also known as the Samal Island-Davao City Bridge Project, the Davao-Samal Bridge Project, the Davao-Samal Bridge Construction Project, the Davao River Bridge Project, and the Samal Island-Davao City Connector (SIDC) Project. The Chinese project title is 援菲律宾达沃河桥梁项目 or 菲律宾达沃河桥梁项目.

📚 Sources & References

Samal Island - Davao City Connector (SIDC) Project, agreement
BIDDING DOCUMENTS
Bridges and Roads_ DPWH Priority Projects
China assessing loan request for the Samal-Davao bridge amid right-of-way dispute with landowners
Chinese firms to bid for Davao-Samal bridge project
Civil Works of Samal Island-Davao City Connector Project Show Evident Progress
Commercial Contract Signed for the China Financed Samal Island-Davao City Connector Project in the Philippines
Davao-Samal Bridge Project Watch - Home _ Facebook
DPWH meets with stakeholders; ensures environmental sustainability of Samal-Davao Bridge
DPWH: All systems go for Samal Island-Davao City Connector project
FOREIGN DEBT SERVICE FOR REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
BY CREDITOR, 2022-2024
Full text of China-Philippines joint statement
Full text of China-Philippines joint statement - Annex: List of agreements and MOUs
GOVERNMENT CONCESSIONAL LOAN AGREEMENT
Government Concessional Loan Agreement on Samal Island-Davao City Connector Project
Gov’t may opt for submarine Davao-Samal tunnel
Groundbreaking sa Samal island-Davao City Connector bridge project, dili madayon karong bulana
High-level meeting in Beijing this week on China-supported PHL infra projects
ODA Portfolio Review Report 2023 Annex 3K
Official Development Assistance Portfolio Review Report 2023
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2021-2023
OUTSTANDING EXTERNAL DEBT FROM REGULAR LIABILITIES OF THE NATIONAL GOVERNMENT
AS OF YEAR-END, 2023-2025
PH
China firm up economic deals
Philippine gov't eulogizes progress in China-funded infrastructure projects
PHL
China hold economic cooperation dialogue ahead of President Xi’s November visit
Samal Island-Davao City Bridge Contract Signed; Detailed Engineering Design To Commence Soon
Samal-Davao bridge to start construction in 2021
Sara asks for help for Davao-Samal bridge
Statement by Spokesperson of the Chinese Embassy in the Philippines on China-Philippines Pragmatic Cooperation
Two bridges in Visayas
Mindanao earmarked for possible Chinese financing
Villar: Feasibility study for Davao-Samal bridge done
中企承建的菲律宾达沃-萨马尔岛大桥举行开工仪式
中华人民共和国与菲律宾共和国联合声明
中菲签署达沃—萨马尔岛大桥项目框架协议及贷款协议
菲律宾总统马科斯、副总统莎拉出席中菲政府间合作项目达沃-萨马尔岛大桥开工仪式
菲律宾总统马科斯、副总统莎拉出席中菲政府间合作项目达沃-萨马尔岛大桥开工仪式
进出口银行融资支持的菲律宾达沃-萨马尔岛大桥项目举行开工仪式
黄溪连大使在达沃—萨马尔岛大桥项目开工仪式上的致辞 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.