Korea extends $500-M development assistance to Phl

MANILA, Philippines - The government of South Korea is extending to the Philippines $500 million in fresh development assistance for the next three years through its official development assistance (ODA) loan program under the Economic Development Cooperation Fund Framework, the National Economic and Development Authority said yesterday.

The loans can be used for the government’s public-private partnership (PPP) program for infrastructure.

The amount is significantly higher than the $300 million given by South Korea from 2007 to 2009.

Socioeconomic Planning Secretary Cayetano Paderanga Jr. welcomed the increase in ODA loans from South Korea, saying that the assistance would significantly help the government with its development projects and PPP projects.

“This development will serve as a springboard for higher investments in the country, as the government strives to achieve growth that is inclusive and sustained,” Paderanga said.

Under the partnership with South Korea, the development assistance would be financing projects in various sectors such as water, agriculture and those supporting green growth such as renewable energy and environmental protection.

“This also reflects the country’s priorities as outlined in the Philippine Development Plan from 2011 to 2016,” Paderanga said.

Loans to be extended for PPP projects under the EDCF are concessional loans which are seen to attract more private investors into the program.

Paderanga told Korean government officials and investors that their support is vital to attain adequate funding and implementation of big-ticket basic infrastructure projects through a policy response such as PPP.

“This will also address the short supply of government resources particularly its investments capacity and technological knowhow,” said Paderanga.

As of 2010, the EDCF’s commitment to the Asian region, including Vietnam, Indonesia, Sri Lanka, Bangladesh and Philippines, has a 66 percent share, with Africa receiving 17.8 percent.

“Aside from the EDCF, the South Korean government expressed interest in extending its Knowledge Sharing Program (KSP), which is designed to share their development experience to developing countries such as the Philippines. Potential areas for KSP funding include village development, multi-industry clusters and information technology for a government accounting system,” NEDA said.