Philippines and ROK Sign Korean Development Assistance Loan Package Worth USD 3 Billion

Secretary for Foreign Affairs Enrique A. Manalo and Korean Ambassador to the Philippines Kim In Chul signed the Framework Arrangement between the Government of the Republic of the Philippines and the Government of the Republic of Korea Concerning Loans from the Economic Development Cooperation Fund for the Years 2022 through 2026. (DFA-OPCD photo by Maria Vanessa Ubac)

21 December 2022, Pasay – Secretary for Foreign Affairs Enrique A. Manalo and Korean Ambassador to the Philippines Kim In Chul signed today the Framework Arrangement between the Government of the Republic of the Philippines and the Government of the Republic of Korea Concerning Loans from the Economic Development Cooperation Fund for the Years 2022 through 2026. This enables the Philippine Government to obtain Official Development Assistance (ODA) loans from the Korean Government up to a maximum commitment of USD3 billion until 2026.

In his remarks, Secretary Manalo acknowledged the swift and steady support of the Republic of Korea in Philippine development efforts. The purpose and generous amount of loan assistance highlight the alignment of the thrust of the Korean government with Philippine socio-economic priorities. The Secretary further acknowledged the firm foundation of trust and friendship between the peoples of the Philippines and ROK.

The Republic of Korea (ROK) is the Philippines’ 6th largest ODA source in 2021, having funded  projects, such as the Phase 2 of the Jalaur River Multipurpose Dam Project worth PhP 11.2 billion which is irrigating more than 31,000 hectares of land, mitigating flooding in the downstream communities, and connecting bulk-water supply in Iloilo; the PhP 9.2-billion construction of a port with cargo handling capacity on a reclaimed land to address port congestion in the Cebu International Port, and; the construction of a two-lane bridge across the Panguil Bay, connecting Misamis Occidental and Lanao del Norte worth PhP 7.4 billion.

The signing of the Framework Arrangement paves the way for the implementation of more development cooperation projects. The amount is three times that of the previous 2017-2022 term arrangement. Major loan projects in the pipeline include, among others, the Panay-Guimaras-Negros Island Bridges Project that would construct a four-lane, 32.47-kilometer, two-sea-crossing bridges, connecting the islands of Panay, Guimaras, and Negros; a project that would construct a four-lane, 13.32-kilometer road traversing the coastal areas of Mandaue, Consolacion, and Liloan; the Ilocos Norte and Abra Irrigation Project that would construct a 126.41-meter high storage dam, a power plant to generate 42.8 MW of electricity, and other components for watershed management; and other flood control projects under the Philippine-Korea Project Preparation Facility. 

The ROK’s participation in Philippine infrastructure development, including the construction of highways, railways, ports and airports, is an important aspect of bilateral relations between the two countries.

The ROK and the Philippines have both committed to elevate bilateral relations, to include increased high-level engagements, closer maritime cooperation, increased collaboration in addressing common security challenges, expanded cooperation in trade and investments and in science and technology, and even closer people-to-people exchanges through tourism, education exchanges, and labor cooperation. END

Joining the Secretary and the Korean Ambassador for the Signing Ceremony are Finance Secretary Benjamin Diokno and KEXIM Country Director Moon Jae Jeong. (DFA-OPCD photo by Maria Vanessa Ubac)

The Signing Ceremony was witnessed by representatives from the Department of Finance, National Economic Development Authority, Korea Export Import Bank, and officials of the Department of Foreign Affairs. (DFA-OPCD photo by Maria Vanessa Ubac)