The Ministries of Finance of the Republic of Korea and the Philippines have signed a Memorandum of Understanding (MoU) under which Seoul will provide Manila with US$2 billion in financial assistance through the Economic Development Cooperation Fund (EDCF), a low-interest loan programme designed to support infrastructure projects in developing countries.
According to Yonhap News Agency, under the MoU, signed during the visit of Korean President Yoon Suk Yeol to Manila, the Korean government will allocate US$905 million from the fund to construct the first section of the Laguna Lake Road Network.
This section will span 37.5 kilometres of roads and dams along the Laguna Lake, near Manila. Additionally, US$1 billion will be allocated to construct a 13-kilometre bridge connecting the three central Philippine islands of Panay, Guimaras, and Negros.
These projects are the largest undertaken by the Economic Development Cooperation Fund with the Philippines, allowing Korean companies to bid on the contracts.
The two ministries also signed a US$110 million loan agreement for the second phase of the Samar Pacific Coastal Road Project, which involves the construction of two new bridges and the renovation of roads in the southern region to further expand infrastructure cooperation.
Additionally, an MoU was signed for the Economic Innovation Partnership Programme to support the Philippines’ efforts in establishing e-government services and satellite communication networks over the next three years.
