PH bags $50-M SKorea loan for infra projects
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Tue, 28 Jan 2020 16:31:14 +0000
THE government has secured a $50-million (about P2.73 billion) loan from South Korea that would support the preparatory engineering services of key public works and irrigation projects.
of Korea, share a light moment after exchanging the signed documents on the loan for the Philippines-Korea
Project Preparation Facility at the Department of Finance’s main office in Manila on Jan. 28, 2020. PHOTO BY
ENRIQUE AGCAOILI
Finance Secretary Carlos Dominguez 3rd and Export-Import Bank of Korea (Kexim) chief representative Sungho Jang exchanged the signed documents on the loan for the Philippines-Korea Project Preparation Facility (PKPPF) during a ceremony at the Department of Finance’s (DoF) main office in Manila on Tuesday.
The loan agreement was earlier signed by Dominguez on behalf of Manila and Kexim Senior Executive Director Deog-Yong Shin on behalf of the South Korean agency.
In his speech, Dominguez said the National Economic and Development Authority Board approved the loan to support the swift implementation of the infrastructure projects of the Department of Public Works and Highways, the National Irrigation Administration and other agencies.
“The infusion of resources will enhance our ability to undertake project preparatory activities in a timely and efficient manner, while drawing on the best available expertise,” he explained.
The Finance chief said the project preparatory facility would cost about $71 million or P3.87 billion. Of the amount, $50 million would be accessed through the loan from the Kexim Economic Development Fund.
The rest would be financed by the counterpart fund of the Philippine government through the project’s implementing agencies, he added.
“The Philippines and [South] Korean governments are confident that this loan will hasten the execution of a number of key water and irrigation, flood control, and road and bridge projects all over the archipelago,” the Dominguez said.
The loan “has very friendly terms,” the DoF chief said, as it charges a zero-interest rate with a repayment period of 40 years, inclusive of a 10-year grace period.
Service charges are set at 10 basis points or one-tenth of 1 percent of each disbursement.
“This is the second loan agreement we have signed under the $1-billion pledge of South Korea in official development assistance to the Philippines under President (Rodrigo) Duterte’s term,” Domgineuz said.
The DoF and Kexim signed a $173-million loan agreement for the construction of the Cebu International Container Port during President Duterte’s official visit to the East Asian country last year.
Chief Representative Jang, meanwhile, said the PKPPF was “envisioned to play a key role not only in the conceptualization, but also in the implementation of, strong and interactive programs and initiatives” under the government’s Build, Build, Build infrastructure program.