SoKor pledges $1.7-B loan to Philippines

MANILA, Philippines — South Korea has committed to provide a $1.7-billion credit facility to the Philippines to help implement the government’s priority programs, the Department of Finance (DOF) reported yesterday.

The DOF said the government is set to sign next week an agreement with South Korea for a $1.7-billion credit facility.

The DOF said the credit facility could be utilized by the government to finance its priority projects in the transport, energy and information and communications technology sectors.

Another $7 million will be extended by Seoul in the form of non-lending programs, the DOF said.

The DOF said the financial instruments would be made available by the South Korean government through the Export-Import Bank of Korea (KEXIM), which manages its Economic Development Cooperation Fund (EDCF).

According to the agency, among the credit facilities provided by South Korea include a project preparation facility.

This facility can be tapped by the Department of Public Works and Highways and the National Irrigation Administration for their infrastructure projects, the DOF said.

Earlier, the South Korean government, through the KEXIM, offered $1 billion in concessional loans over a six-year period to finance key infrastructure projects in the Philippines.

Finance Assistant Secretary Maria Edita Tan said included in the initial pipeline for South Korea’s funding assistance are the P37.76 billion Metro Manila Bus Rapid Transit (BRT) Line 2 and the P9.2 billion New Cebu International Container Port project.

Tan said seven more projects were submitted by the Philippine government for possible financing under the $1 billion loan from the KEXIM.

These projects are the development of marine aids to navigation in Luzon and Visayas, the new Dumaguete Airport Development project, the development of hybrid power generation systems in the Philippines, the establishment of Mindoro multi-grain processing center, the development of the national animal identification and traceability system, the drive-through portal inspection facilities in international ports of entry and the automated collection of slaughter data and issuance of meat inspection certificates.