Korea to invest $2 billion in major infrastructure projects in the Philippines

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Korea to invest $2 billion in major infrastructure projects in the Philippines

Published: 07 Oct. 2024, 17:36

SHIN HA-NEE
shin.hanee@joongang.co.kr

From left: Korean Minister of Economy and Finance Choi Sang-mok, President Yoon Suk Yeol, Philippine President Ferdinand Marcos, Jr. and Secretary of the Department of Finance Ralph Gonzalez Recto pose for a photo during a signing ceremony held in Manila on Monday. [YONHAP]

Korea will participate in major infrastructure projects in the Philippines, valued at a combined $2 billion, as part of its official development assistance (ODA) program.

These construction projects, financed through the Economic Development Cooperation Fund (EDCF), mark the largest initiatives involving the fund to date, according to the Ministry of Economy and Finance.

The announcement was made on Monday following a summit between the two countries in Manila, as President Yoon Suk Yeol began his state visit to several Southeast Asian countries, starting with the Philippines.

Korea’s Minister of Economy and Finance Choi Sang-mok and Philippine Secretary of Finance Ralph Gonzalez Recto signed two memorandums of understanding for the construction of a beltway along the shore of Laguna de Bay near the Philippine capital and a Panay-Guimaras-Negros (PGN) bridge connecting the three islands.

Only Korean construction companies will be allowed to participate in the competitive bidding process for these projects.

The Korean government will provide $905 million in low-interest loans through the EDCF for the construction of a 7.9-kilometer (4.9-mile) section of the planned 37.5-kilometer beltway along the western shoreline of Laguna de Bay, the largest lake in the country.

Additionally, Korea will offer more than $1 billion to build a 13-kilometer section of the PGN project, which aims to connect the three islands with a 32.47-kilometer bridge. This will mark the largest funding commitment ever made by the EDCF.

The two countries also signed a $110 million loan agreement to fund the second phase of the Korean-funded Samar Pacific Coastal Road project, which includes the construction of two bridges and the refurbishment of a 13-kilometer section, following the completion of the first phase last year.

Yoon's ongoing state visit will last six days through Friday. After departing from the Philippines, the president will head to Singapore before attending the Asean Plus Three summit in Laos.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]