Central Visayas is Philippines fastest-growing regional economy – DOF

Cebu is well positioned to benefit from the country’s positive economic prospects, citing its role as one of Asia’s leading outsourcing hubs and a crucial trade gateway linking Luzon, Visayas and Mindanao to international markets, according to the Department of Finance (DOF).

Finance Secretary Ralph Recto said the region remains an economic powerhouse of Central Visayas, which is the fastest-growing regional economy in the country over the last two years, with growth of 7.3 percent.

“This outpaced the national average growth of 5.9 percent since the start of the Marcos administration in 2022, the fastest in Asia and almost double the global rate,“ the DOF said.

Meanwhile, the 35-kilometer Cebu Bus Rapid Transit is set to be fully completed by 2030. The mass transit line is expected to serve over 160,000 passengers per day once completed, but it is beyond the initial scheduled 2028 opening of the bus route.

“The country’s strong economic fundamentals will also strengthen Cebu’s global dominance in shipbuilding, furniture and food processing industries,” the DOF said.

Recto said DOF officials in Cebu  are in full support of accelerating the city’s growth and digitalization, enhancing revenue collections and improving public services, highlighting the Bureau of Local Government Finance’s role.

He also noted that local governments could access financing from the Land Bank of the Philippines and the Development Bank of the Philippines, adding that the interest rate cuts delivered by the Bangko Sentral ng Pilipinas are expected to lower borrowing costs for local government units’ development projects.

According to Recto, the Bureau of Internal Revenue and the Bureau of Customs have to collect P8.8 billion a day and P3 billion daily, respectively.

From January to August, Port of Cebu’s collection went up by over seven percent to P31.71 billion, reflecting a strong trade activity and improved revenue performance.

Likewise, Cebu’s regional district office has collected P13.1 billion, 12.3 percent higher than last year.

Source: Inquirer

New Cebu port construction to start in Q3

The Department of Transportation (DOTr) expects the construction of the P16-billion Cebu international port to start in the third quarter.

The operations and maintenance (O&M) of the port is being eyed as a public-private partnership (PPP) project.

During the Asia Infrastructure Forum organized by Infrastructure Asia, Transportation Undersecretary Timothy John Batan said the agency expects construction of the new Cebu international port to begin by next quarter, after the necessary government approvals are secured.

The project, to be built on a 25-hectare reclaimed area in Consolacion in Cebu, will have two berths that can accommodate 2,000 TEU (twenty-foot equivalent unit) vessels upfront and eventually 4,000 TEU vessels.

Batan said the project has secured the endorsement of the Investment Coordination Committee (ICC)-Technical Board earlier this week.

The next step is to get the approvals of the ICC-Cabinet Committee and the National Economic and Development Authority Board, which is chaired by the President.

“So we’re pursuing our construction, hopefully, starting in the third quarter of this year,” he said.

According to Batan, the target for the project completion is in 2027.

While the construction of the port is going to be funded by a loan from the Export Import Bank of Korea (KEXIM), he said there is an opportunity for the private sector in the O&M of the port.

A $172.64 million loan agreement was signed by the Philippines and KEXIM for the construction of the new international container port in Cebu in 2018.

Currently, only one port is serving foreign container traffic in Cebu.

Batan said the existing port for international container traffic is also very congested.

He said the government is hopeful the project would generate interest from firms, citing it is the biggest opportunity in the Philippines’ port space.

Source: Philstar