The Department of Finance reported yesterday that South Korea has committed to provide a credit facility for the Philippines in order to help implement the priority programs of the government.
According to the government sector, the agreement with South Korea is set to be signed next week for the $1.7 billion credit facility.
The said credit facility can be utilized in the energy, transport and information and communications technology sectors which are the priority projects of the government now. The facility will finance these projects to jump start Philippines’s progress.
This $1.7-billion is given through lending programs. According to the DOF, another $7 million will also be extended by Seoul to the Philippines, but in the form of non-lending programs.
The DOF also said that the financial instruments would be made available to the Philippines by South Korean government using the Export-Import Bank of Korea (KEXIM), this bank manages Korea’s Economic Development Cooperation Fund (EDCF.)
A preparation facility is included among the credit facilities that South Korea will give our country, this is according to the DOF.
The facility can be tapped into by the National Irrigation Administration (NIA) and Department of Public Works and Highways (DPWH.)
Earlier, the South Korean government already offered $1 billion in concessional loans that is payable over a period of six years to fund the infrastructure projects of the Philippines.
Finance Assistant Secretary Maria Edita Tan mentioned that the projects that are in the pipeline to be funded by the loan assistance are the P37.76 billion Metro Manila Bus Rapid Transit (BRT) Line 2, and also the P9.2 billion New Cebu International Port project.
According to Tan another seven projects are submitted by the Philippine government that are possibly going to be funded by the $1 billion loan from KEXIM.
These seven projects are the development of hybrid power generation systems in the Philippines, the new Dumaguete Airport development project, the development of marine aids to navigation in Luzon and Visayas, the establishment of Mindoro multi-grain processing center, the drive-through portal inspection facilities in international ports of entry, the automated collection of slaughter data issuance of meat inspection certificates, and the development of the national animal identification and traceability system.