The governments of Philippines and Japan have signed a supplemental loan agreement for the ongoing New Bohol airport expansion project on Panglao Island. This loan will cover the extension of the runway from 2,000 metres to 2,500 metres, which will enable the airport to accommodate large commercial aircraft. The loan also covers the expansion of the passenger terminal building from 8,500 square metres to 13,300 square metres. The loan, coursed through JICA, consists of PHP 2.1 billion at 0.1 per cent interest for non-consulting services and 0.01 per cent for consulting services, payable over 40 years with a 12-year grace period. The airport will be upgraded to handle regional flights within the Asia-Pacific region, replacing the old Tagbilaran airport, which only hosts domestic flights. The airport is expected to accommodate about 2 million passengers annually, compared to 800,000 for Tagbilaran airport. New Bohol airport on which work began in June 2015 is expected to be fully operational by end-November 2018.
