THE South Korean government has doubled its official development assistance (ODA) to the Philippines to $1 billion for the period 2017 to 2022, with the first loan granted to the Cebu International Container Port project.
Other projects that would be financed by the $1-billion ODA are the $50-million project preparation facility for the National Irrigation Administration, $100-million project for new Dumaguete airport development, and $41-million dollar project for the implementation of electronic receipt, invoices and sales reporting system.
"This leaves us with the balance of $636 million. I recommended the use of unallocated amount to two or three of the flagship infrastructure projects identified in the 'Build, Build, Build' program," he said.
"We promise to forward to the Korean government as soon as possible a list of flagship projects for their consideration," Finance Secretary Carlos Dominguez III said at a media briefing on the sidelines of President Rodrigo Duterte's official visit to Seoul.
Presidential Spokesperson Harry Roque Jr. said the South Korea offered P1 billion in ODA to help boost the Duterte administration's ambitious "Build, Build, Build" infrastructure program.
"South Korea has doubled their overseas development assistance in support of our 'Build, Build, Build' infrastructure program...South Korea promised to double it from $500 million in ODA to $1 billion for our infrastructure projects," Roque told reporters at the
The Duterte government's "Build, Build, Build" program was meant to overhaul the country's roads, railways, bridges, airports and other government facilities in a bid to improve the Philippines' economic activity, attract investments, and create jobs for Filipinos.
Dominguez said the increased ODA was in accordance with the framework arrangement signed by the two nations on May 4.
Under the framework deal, the Philippines can obtain loans from 2017 to 2022, Dominguez said.
Dominguez said the $172.64-million loan agreement on the Cebu International Container Port project was covered by the framework agreement with South Korea.
"The first loan carved out from the billion-dollar framework agreement amounts to $172.64 million. It will be used to finance the new Cebu international container port project," the Finance chief said.
"The new container port will increase the operational capacity of the main cargo way in Cebu. It will help alleviate the road congestion in the Cebu-based port area and provide a more efficient and reliable transport infrastructure to enhance the flow of goods and services in the Visayas," he added.
Dominguez assured the government of South Korea that the Philippines would strictly monitor the projects, make sure "that none of the Korean taxpayer's money is wasted in corruption, and that all the ODA-supported projects will bring lasting benefits to the Filipino people." (SunStar Philippines)