Korea mulls $3 billion financing facility

MANILA, Philippines —  The Korean government is looking at establishing a $3-billion funding facility for the Philippines to finance various projects.

Finance Secretary Ralph Recto recently met with Ambassador of Korea Lee Sang-hwa to strengthen economic and investment cooperation between the two countries.

In particular, Korea plans to establish a $3 billion Economic Development Promotion Facility (EDPF) through the Export-Import Bank of Korea (KEXIM) as an additional source of financing.

Recto said the cooperation agreement is targeted to be signed within the year.

EDPF is a new official development assistance (ODA) loan program of the Korean government to cover financial gaps for large-scale infrastructure programs.

As an independent ODA agency, KEXIM is mandated to operate and manage the EDPF including identifying pipeline projects, loan approval and signing loan agreements.

Recto has to specify which projects might benefit from the EDPF, but the Department of Public Works and Highways earlier said it also plans to tap the facility.

Further, the Korean Embassy is proposing to sign a memorandum of understanding to conduct a feasibility study on the Bataan Nuclear Power Plant (BNPP) in a bid to enhance energy security in the country.

The neighboring Asian country is also expected to approve and sign a new loan agreement for the new Dumaguete Airport.

On the other hand, the Philippines maintained its interest to continue collaboration with the Korean government and vowed to address the issues on streamlining processes and approvals and tax related concerns.

The DOF also sought Korea’s support for the Philippines’ campaign to renew its term as alternate board member to the Green Climate Fund.