SoKor extends $500-M credit line for 4 infra projects

MANILA, Philippines - The National Government of South Korea has extended a $500-million credit line to the Philippines for four infrastructure projects, according to the National Economic and Development Authority (NEDA).

Under the Economic Development Cooperation Fund (EDCF) for 2014-2017, the four projects that may tap into the fund are: the Jalaur River Multi-Purpose Project, Stage II, the Samar Pacific Coastal Road Project, the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in Low-Lying Areas of Pampanga Bay, and the Baler-Casiguran Road Improvement Project.

The four projects have a combined loan requirements amounting to $335.78 million.

NEDA deputy director general Rolando G. Tungpalan said the $500-million credit line signals renewed development cooperation between both countries.

“The topped up EDCF provides additional funding option for items outlined in our Public Investment Program (PIP). This should allow us to ensure execution of priority programs and projects in the next few years,” Tungpalan said.

He added that South Korea is interested in infrastructure projects especially in agriculture, energy and transportation. Their expertise in these areas could be beneficial, especially with the infrastructure backlogs in accelerating development and recovery from recent calamities.

The South Korean government also expressed interest to fund disaster prevention and rehabilitation projects in light of damages brought by Typhoon Yolanda.

South Korea likewise expressed its support for priority projects in the updated Philippine Development Plan (PDP) and for the opportunity to further deepening Philippines-South Korea collaboration.

Meanwhile, Tungpalan said that the revised framework in financing national government projects would maximize the use of official development xxxx (ODA) for projects requiring foreign content, expertise and technology.