South Korea commits $1B to fund PHL infrastructure projects

South Korea’s pledge of $1 billion in official development assistance would be used to fund the Duterte administration’s ambitious infrastructure program, Finance Secretary Carlos Dominguez III said Tuesday.

Around $172.64 million of the ODA will go to the new Cebu International Container Port project, $50 million to the project preparation facility of the National Irrigation Administration, and $100 million to the new Dumaguete Airport.

Also in the pipeline is $41 million for the implementation of electronic receipt, invoices, and sales reporting system to help the government monitor all taxes paid by retailers.

Te balance of $636 million will fund two or three infrastructure projects identified under the “Build, Build, Build” program as recommended by the Philippines, Dominguez said.

“We promised to forward to the Korean government, as soon as possible, a list of the flagship projects for their consideration,” Dominguez told reporters in Seoul.

The higher amount of ODA is in line with the framework arrangement signed by Manila and Seoul on May 4—which gave the Philippines the opportunity to obtain loans from South Korea’s Economic Development Cooperation Fund up to a maximum of $1 billion from 2017 to 2022.

Under the framework arrangement, the South Korean government will jointly identify and execute infrastructure development projects in the Philippines, according to Philippine Ambassador to Seoul Raul Hernandez. 

The loan for the Cebu port project carries an interest rate of 0.15 percent and is payable in 40 years.

Dominguez assured the South Korean government of “strict monitoring” of the projects to make sure that “none of the Korean taxpayers’ money is wasted in corruption and that all the ODA-supported projects will bring lasting benefits to the Filipino people.”

“Both sides agreed to form a small group and hold more frequent consultations to ensure that priorities remain aligned as well as to allow us the opportunity to discuss, identify and address project preparation and implementation issues. We hope to get the projects running as soon as possible to support the rapid expansion of our economy,” he said.

The South Korean government extended a $6.6-million grant to enhance the capabilities of the Philippine National Police, which includes vehicles and personnel training, Dominguez said

The Philippines also requested South Korea to assist in the protection and preservation of the ecological systems in high density tourist areas like Siargao “so that they do not develop into problems like Boracay.”

Boracay has been closed to tourists to give way for a six-month rehabilitation process as a result of environmental degradation and unchecked tourism.

Manila has also asked Seoul to lower tariffs pm Philippine agricultural products entering the South Korean market, which is currently at 25-30 percent.

“Our request for them is to bring it down to the vicinity of 5 percent, almost at the same rate that we are offering products from South Korea. We are basically asking for reciprocity,” Trade Secretary Ramon Lopez said.

Companies from both countries are to sign later Tuesday 23 agreements, valued at $4.8 billion, which could create 50,000 jobs, the Trade official noted.

The deals are on top of the five government-to-government deals signed on Monday at the presidential Blue House. —VDS, GMA News