Philippines, Sweden sign MOU on financial, development cooperation

MANILA, Philippines — The Philippines has signed a memorandum of understanding (MOU) with Sweden, which would boost the country’s access to Swedish financing for development initiatives.

In a statement, Finance Secretary Ralph Recto said the government-to-government financial and development cooperation agreement with Sweden would allow the Philippines to invest in more development projects.

“I am proud to take our collaboration to the next level. We entered another agreement that will enhance the economic security of Filipinos through increased access to Swedish financing for our development initiatives,” he said.

The MOU on financial and development cooperation was signed between Recto and Andreas Carlson, Sweden’s minister for infrastructure and housing, on Nov. 22.

According to the Department of Finance (DOF), the MOU will further enable the Philippine government to tap and access grants, technical assistance, concessional official development assistance as well as blended financing from the Swedish Government for priority programs and projects of the country.

Among the high-impact sectors covered by the MOU are sustainable infrastructure development, public transportation, renewable energy and water and waste management, among others.

In particular, the projects in the pipeline include the EDSA Busway Project, the Iloilo Bus Rapid Transit, the Subic-Clark-Manila-Batangas Railway Project, the National Bus Standardization, the Hydropower Potential Resource Assessment and the National Power Corp. - Hybridizing Diesel Power Plants.

“In these times marked by your political uncertainty, it is the conviction of the Swedish government that we must do everything possible to foster strong partnerships for growth, prosperity and security in our respective countries and around the world with trusted partners. The Philippines is one of the very important partners in the world,” Carlson said.

The Philippines will also gain access to the expertise and innovative solutions of the Swedfund International AB and the Swedish Export Credit Corp., which will ensure the long-term sustainability and success of the projects undertaken.

These projects complement Sweden’s ongoing support to improve the welfare and global competitiveness of Filipinos through partnerships in cancer care, defense and digitalization.

Recto said the presence of around 40 major Swedish companies in the country, including the largest IKEA store, is a powerful testament to the confidence Sweden holds in the Philippine economy.

“With this broad range of development areas, Sweden is certainly one of the Philippines’ strongest poverty-fighting allies, helping us build an inclusive economy for our citizens,” Recto said.