The South Korean government is offering up to $1 billion to finance Philippine infrastructure projects in 2017 to 2022, the National Economic and Development Authority (NEDA) said Wednesday.
The priority areas for funding are transport, energy infrastructure, and information and communications technology under a proposed cooperation agreement, taking into consideration Korea’s advantage in these sectors, the NEDA said in a statement.
South Korea and the Philippines are set to finalize the framework agreement in August 2017, covering $1 billion of concessional loans from the Export-Import Bank of Korea (KEXIM) in the six years to 2022.
KEXIM is offering additional support through its Knowledge Sharing Program (KSP), an economic cooperation program through which Korea shares successes and failures and proposes applicable policy recommendations.
Through the Project Preparation Facility, KEXIM will assist the Philippines in pre-investment activities including project planning, preparation and feasibility studies.
The NEDA and Philippine agencies met with KEXIM from May 29 to June 1 on possible projects that may funded.
NEDA Undersecretary Rolando Tungpalan noted the offer from Korean will boost Philippine efforts to carry out its infrastructure program, which requires roughly P8.4 trillion from 2017 to 2022.
“We need to be ambitious and, at the same time, we need to scale up our implementation capacity. Financing this six-year infrastructure program will be sourced from domestic resources, official development assistance and public-private partnership programs,” Tungpalan said.
The other government agencies that met with KEXIM were the Department of Finance, Department of Transportation, Department of Energy, Department of Agriculture, Department of Public Works and Highways, Department of Information and Communications Technology, National Irrigation Authority and the National Electrification Administration.