The South Korean government will provide a $20.6-million official development assistance (ODA) loan for the Samar Pacific Coastal Road Project of the Department of Public Works and Highways (DPWH).
In a statement on Wednesday, the Department of Finance (DOF) said that on August 19, the governments of the Philippines and South Korea signed the loan agreement that will support the implementation of the DPWH project.
Finance Secretary Cesar Purisima signed the agreement on behalf of the Philippine government while Export-Import Bank of Korea (Kexim) Chairman and President Yong Hwan Kim signed on behalf of South Korea.
The DOF explained that under the agreement, South Korea, through Kexim will provide the $20.6-million ODA loan under the Economic Development Cooperation Fund.
The loan will finance the construction of 14 kilometers of roads and 220 lineal meters of bridges that will traverse the coastal towns from San Policarpio to Palapag, Samar.
The agency added that as approved by the National Economic and Development Authority Board, the linking of the so-called “Pacific towns” will complement and eventually establish a circumferential road loop for Samar Island, which is envisaged to enhance the development of potential agricultural lands and fishing grounds of the province, and facilitate the movement of goods and services.
Mayvelin U. Caraballo