7 projects lined up for funding by Korea Eximbank

Posted on July 05, 2017

THE Department of Finance (DoF) said it has identified seven projects to be funded by the $1 billion concessional loan offered by South Korea last month, through its Economic Development Cooperation Fund.

The development of a new Dumaguete Airport is included in the list projects to be funded by the $1 billion concessional loan offered by South Korea. Photo credit: Wikimedia Commons
In a document obtained by reporters, these projects included the development of marine aids to navigation in Luzon and Visayas, the new Dumaguete Airport development project, the development of hybrid power generation systems, the establishment of a Mindoro Multi-Grain Processing Center, the development of the National Animal Identification and Traceability System, a drive-through portal inspection facilities in international ports of entry, and the automated collection of slaughter data and issuance of meat inspection certificates.

The loan was offered by the Korea Export-Import Bank, after it met with selected agencies of the Philippine government last month to discuss financing participation in the government’s infrastructure-building push.

Finance Secretary Carlos G. Dominguez III said that the projects would need feasibility studies to determine their cost, before they are submitted to the National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC), as well as submission to the South Korean government for its approval.

“We need feasibility studies first,” he said.

“There is no exact status as to where we are in the preparation of the feasibility studies. Right now for these projects that I have mentioned, there’s still no approval from the ICC, so that is where we are right now.”

On top of the loan, South Korea also offered to assist in the government’s pre-investment activities, including project preparation, and feasibility studies and plans formulation, through the bank’s Project Preparation Facility.

The bank also took part in funding the P9.19 New Cebu International Container Port expected to be constructed later this year, which involves a 25-hectare reclaimed site in Consolacion, Cebu, which was approved by the NEDA board last year.

South Korea will fund P7.96 billion, while the P1.23 billion balance will be taken from the Philippine government’s budget.

Last week, the Department of Works and Highways and South Korean delegates signed a memorandum of agreement to initiate preparations for the planned P4.9 billion or $100.13-million Panguil Bay Bridge Project in Northern Mindanao.

The government plans to raise infrastructure and social spending to about 7.1% of gross domestic product, or P8.4 trillion, until the end of its term, in a bid to boost the economy to growth of 7-8% between next year until 2022 from 6.9% in 2016. It also plans to slash poverty incidence to 13-15% from 21.6% in 2015. -- Elijah Joseph C. Tubayan