A $1.7-billion credit facility plus non-lending programs worth another $7 million have been offered by South Korea for priority projects in the Philippines, the Finance department said.
In a statement on Wednesday, the department said the assistance would be made available through the Export-Import Bank of Korea (Kexim), which manages South Korea’s Economic Development Cooperation Fund (EDCF).
“A country program mission from Kexim-EDCF that was here from August 29 to 31 met with Philippine officials and identified the priority sectors of ICT, transport and energy for possible loan assistance from South Korea,” the department quoted its International Finance Group (IFG) as reporting during a recent meeting.
The Finance department said that one of the “tools” the Philippines could tap is a $100-million credit line for project preparation. Loans will carry zero interest and are payable in 40 years with a 10-year grace period.
“The Kexim credit line can also be tapped via a tied loan facility with South Korean companies entering into joint ventures with Philippine local firms,” it added.
The IFG said the project preparation facility could be tapped by the Department of Public Works and Highways (DPWH) and the National Irrigation Administration (NIA).
The Department of Information and Communications Technology, Department of Agriculture, Department of
Transportation and the National Electrification Administration also have projects in the pipeline for KEXIM funding, the IFG added.
The Finance department said a signing ceremony for the South Korean funding package would take place at the sidelines of next week’s Association of Southeast Asian Nations summit.
Kexim earlier this year also offered to provide $1 billion in concessional loans — to be spread out over six years — for public infrastructure projects.
In June, the government announced that P9.19 billion in funding for the New Cebu International Container Port had been approved by Seoul.
The government is also looking to use South Korean funds for Metro Manila’s P36.76-billion Bus Rapid Transit Line 2 central corridor.