DOF: No P28-B ODA loan from South Korea

The Department of Finance (DOF) recently denied reports that South Korea suspended a ₱28 billion official development assistance (ODA) loan to the Philippines due to corruption issues.a

“As regards the supposed ₱28 billion ODA loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said in a statement.

The agency stressed that the PBBM Rural Modular Bridge Project loan, amounting to ₱28 billion, is being proposed for financing by France—not South Korea.

The DOF explained that the project was initially considered for Korean funding, but talks were halted last year by the Department of Agrarian Reform due to “non-alignment on scope and other key technical specifications.”

It added that since the last quarter of 2024, the government has been seeking alternative bilateral partners and is now in “advanced negotiations with the French Government to finalize the project’s technical and financial terms.”

“We reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” the DOF said.