DOF: P28-B loan being proposed for French financing, not South Korean

The Department of Finance (DOF) on Wednesday shed light on a proposed foreign-funded P28-billion infrastructure project, which was earlier halted by the South Korean government as announced by its President Lee Jae-myung, citing issues of corruption hounding the country.

In a statement, the DOF said that “the P28-billion Rural Modular Bridge Project is currently being proposed for financing by the Government of France, not South Korea.”

The Finance Department issued the clarification after Lee, in a Facebook post, announced that he ordered an “immediate halt to the proceedings for the project,” describing his move as “significant” in “preventing the unnecessary waste of 700 billion Korean won in taxpayer money and preemptively blocking risks that could lead to poor management and corruption.” 

Lee’s post accompanies a link of a report by The Hankyoreh about the halt of proceeding with the Philippines’ request in 2023, through Economic Development Cooperation Fund (EDCF), for a loan to construct 350 bridges across the country. 

The DOF, in its initial response, said that it “categorically clarifies that no such loan exists” concerning the supposed P28-billion development assistance loan between South Korea and the Philippines.

In its latest statement, the Finance Department said that as part of “standard practice,” the Philippine government is exploring financing options with multiple development partners for key projects.

“In this case, the project was initially considered for funding through South Korea, but the Department of Agrarian Reform (DAR) decided to halt previous discussions last year due to non-alignment on scope and other key technical specifications,” the Finance Dept. explained.

Further, the agency said the Philippines side, as early as the last quarter of 2024, decided to look for other bilateral partners who can implement the full scope of the project

“Hence, there is no existing loan for the said project with South Korea,” the DOF said.

“The government is now in advanced negotiations with the French Government to finalize the project’s technical and financial terms,” it said.

The South Korean chief executive’s announcement of halting the proceedings for the supposed loan financing being proposed by the Philippines came in the midst of a corruption scandal in the country involving contractors for flood control projects, government officials, and lawmakers. — RF, GMA Integrated News