Korea extends $1.7B loan to PH for infra projects
Seoul has stepped up as a reliable partner for the Duterte administration.
South Korea has formally extended a $1.7 billion loan line for the Philippines, plus another $7 million of funding to “help implement” priority infrastructure projects covering transport, information and communications technology, and energy sectors.
In a statement, the Department of Finance said the credit may be accessed via the Export-Import Bank of Korea (KEXIM), as charged to the country’s Economic Development Cooperation Fund as official development assistance to the Philippines.
This includes a $100-million project preparation facility, payable in 40 years at zero interest. A 10-year grace period may also be availed during payback. The Department of Public Works and Highways and the National Irrigation Administration can tap the KEXIM for project financing.
Some projects under the Department of Information and Communications Technology, Department of Agriculture, Department of Transportation and the National Electrification Administration will also be funded by the Koreans.
The formal agreement will be signed during the 2017 summit of the Association of Southeast Asian Nations in Manila in mid-November.