The Duterte administration is tapping a $50-million zero-interest loan from South Korea to finance the feasibility study and other project preparations for its infrastructure push.
Finance Secretary Carlos Dominguez III and Chief Representative Sungho Jang of the Export-Import Bank of Korea (KEXIM) exchanged the signed documents on the loan (equivalent to P2.73 billion) for the Philippines-Korea Project Preparation Facility (PKPPF) during ceremonies Tuesday at the Department of Finance office in Manila. These were earlier signed by Dominguez and Deog-Yong Shin, KEXIM senior executive director.
Dominguez said the zero-interest loan will support the funding for project preparation activities, such as pre-feasibility and feasibility studies, detailed engineering designs, and safeguard assessment analyses.
“Activities under the PKPPF are necessary and integral aspects of any project as they will help the government determine whether a particular project is economically viable and sustainable over the long term and, ultimately, whether the Filipino people will reap the economic benefits and outweigh the public resources that the government might invest,” he said.
The PKPPF will also enable the government to subject a proposed project to rigorous analysis to determine the best source of financing for it.
“During the ASEAN-Korea Commemorative Summit in November 2019, Korean President Moon Jae-in referred to the Philippines as the ‘future of Asia.’ If the PKPPF signing and our two countries’ continued cooperation are any indications, the future looks very promising, indeed,” Jang said.
There are currently 15 projects being considered under the facility, including major water and irrigation, flood control, and road and bridge projects all over the country.
The loan will primarily benefit projects implemented by the Department of Public Works and Highways and the National Irrigation Administration.
