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South Korea to finance Philippine development projects

The Export-Import Bank of Korea (KEXIM) is willing to allocate for the Philippines USD1 billion in concessional loans over a six-year period that may form part of the KEXIM pipeline in the current medium term (2017-2022). 

NEDA Undersecretary Rolando G. Tungpalan expressed appreciation for Korea’s offer of assistance, noting that this will boost the Philippine government’s efforts to carry out its infrastructure program, which requires roughly P8.4-trillion.

“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,” he added.

KEXIM recently met with selected agencies of the Philippine government to discuss possible projects that may form part of their pipeline.

Among the agencies consulted were the National Economic and Development Authority, 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.

Transport, ICT and energy infrastructure were identified as priority areas in the proposed cooperation considering Korea’s comparative advantage in these sectors.

Aside from concessional loans, the KEXIM is also offering its support through its Knowledge Sharing Program (KSP) facility, a knowledge-driven economic cooperation program that will enable Korea to share its successes and failures and propose applicable policy recommendations.

KEXIM also expressed willingness to assist in the Philippines’ pre-investment activities, including project preparation and feasibility studies and plans formulation, through the Bank’s Project Preparation Facility.

The Philippines and Korea are set to finalize the framework agreement in August 2017.

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