South Korea eyed as funding source for DPWH projects

MANILA, Philippines — The Department of Public Works and Highways is tapping a new financing scheme of the South Korean government to fund four DPWH projects in the pipeline.

DPWH Undersecretary Emil Sadain said the agency is studying the possibility of accessing South Korea’s economic development promotion facility (EDPF) to deliver projects in Central Luzon and Central Visayas.

The facility is a new form of official development assistance designed to cover the financial gap in big-ticket infrastructure.

Based on a study, Sadain said the DPWH may tap the EDPF to co-finance the completion of the 28.82-kilometer Lubao-Guagua- Sasmuan-Minalin-Santo Tomas bypass road in Pampanga.

The DPWH may also tap the EDPF to finance the second segment of the Pampanga Integrated Disaster Risk Reduction and Climate Change Adaptation.

Sadain said the DPWH is planning to fund the detailed engineering design (DED) and construction of the 10.6-kilometer Consolacion-Liloan Bypass Road in Cebu City through the EDPF.

Likewise, a loan may also be obtained to undertake the feasibility study for the Lapu-Lapu Coastal Road.

Sadain said a delegation from the Export-Import Bank of Korea (KEXIM) visited the DPWH to discuss how the Philippines could tap the facility.

During the meeting, KEXIM director general Chung-Hwa Cho shared with DPWH officials the procedure for availment, from project identification to loan approval and loan signing.

Sadain said DED activities for the Panay-Guimaras-Negros Island Bridges Project would kick off in June.

The DED service for the project is covered by a $56.6-million loan obtained from South Korea. The financing will pay for the preliminary design of the inter-island bridge covering the review of the feasibility study as well as the survey of construction cost.

The Panay-Guimaras-Negros Island bridges project spans a total of 32.47 kilometers and is expected to cut travel time from Panay to Negros to just one hour.

The project worth close to P188 billion is scheduled for construction between 2025 and 2030.

Apart from EDPF, South Korea offers a number of loan arrangements for developing economies, the most popular of which is the Economic Development Cooperation Fund (EDCF).

Last year, the Philippines and South Korea signed a $3-billion agreement for the delivery of green and infrastructure projects through the EDCF until 2026.