Korea to increase aid to RP

MANILA, Philippines - The Korean government is expected to increase its financial aid to the Philippines on the back of the strong economic cooperation between the two countries and also because of the prolonged impact of the global financial turmoil, a ranking official of the National Economic and Development Authority (NEDA) said yesterday.

NEDA deputy director-general Rolando Tungpalan said that from 2007 to 2009, Korea’s financial assistance to the Philippines amounted to $300 million.

“For 2007 to 2009, the Philippines and Korea finalized an agreement for loans involving some $300 million for Korean assisted projects through the Korea Economic Development Cooperation Fund (EDCF). Indeed, we are very grateful for this,” he said during the Philippines-Korea Development Cooperation Forum last Wednesday.

Tungpalan said the upward trend in the loans and grants is expected to continue in the next cycle or from 2010 to 2012 although there are no available figures yet as to how much would be extended to the Philippines. “We’re on to our next cycle,” he noted.

He said that while South Korea may be a relatively new player in terms of development cooperation with the Philippines, its contributions have been substantial.

Under the EDCF facility, the projects are mostly infrastructure geared towards the improvement of the investment climate in the country.

Transportation projects include the development of the Bacolod-Silay Airport Access Road and the Gapan-San Fernando Olongapo Road Expansion project.

For the widening of Gapan-San Fernando road, Korea and the Philippines signed on Tuesday a loan agreement of $41 million.

Other ongoing projects include the Northrail-Southrail Linkage project amounting to $35 million, the development of the Lung Center of the Philippines and the National Referral Center amounting to $2.9 million and the Laguindingan Airport Development project in Misamis Oriental worth $32.7 million.

Projects in the pipeline include a $31 million grant for the establishment of rice processing centers in the Philippines.

Tungpalan said that these projects would help improve the investment climate in the country as he noted Korea’s significant contribution to the country.

“The wide range of assistance that you provide, along with the increasing levels of investments and tourists are a testament to your commitment to partner with us in building a prosperous, stable and peaceful Philippines,” he said.

He said the Philippines and South Korea could help each other as they both try to weather the global economic crisis.

The Philippines-Korea Development Cooperation Forum was organized by Korea’s Ministry of Strategy and Finance, the Export-Import Bank of Korea, the Embassy of the Republic of the Philippines and the Korea Institute for International Economic Policy.