The Philippines has signed an agreement with South Korea for a total loan worth 3 billion US dollars, which is earmarked for the country's infrastructure projects.
Department of Foreign Affairs (DFA) Secretary Enrique Manalo and Korean Ambassador to the Philippines Kim In Chul signed on Wednesday the Framework Arrangement for the Economic Development Cooperation Fund for the Years 2022 through 2026.
The agreement will allow the Philippines to get Official Development Assistance (ODA) loans from South Korea to a maximum commitment of 3 billion dollars until the next three years.
In his remark, Manalo acknowledged the swift and steady support of the Republic of Korea in Philippine development efforts and looked forward to more engagements.
According to the DFA, the generous amount of loan assistance highlights the alignment of the thrust of the Korean government with Philippine socio-economic priorities.
South Korea is the Philippines' 6th largest ODA source in 2021, the DFA said, adding it funded various infrastructure projects.
The signing of the latest Framework Arrangement, which contains a loan amount that is three times bigger than the previous agreement, paves the way for the implementation of more development cooperation projects, DFA noted.
The agency said major loan projects in the pipeline include: the Panay-Guimaras-Negros Island Bridges Project that would construct a four-lane, 32.47-kilometer, two-sea-crossing bridges, connecting the islands of Panay, Guimaras, and Negros; a project that would construct a four-lane, 13.32-kilometer road traversing the coastal areas of Mandaue, Consolacion, and Liloan; the Ilocos Norte and Abra Irrigation Project that would construct a 126.41-meter high storage dam, a power plant to generate 42.8 MW of electricity, and other components for watershed management; and other flood control projects under the Philippine-Korea Project Preparation Facility.
"We started out shoulder-to-shoulder as brethren fighting for freedom under threat from aggression. Today, we are witnesses to how much this friendship has evolved for our mutual benefit," Manalo said.