MANILA, Philippines - The government has signed an P8.96- billion ($207.88 million) loan agreement with the Export-Import Bank of Korea to finance the second stage of the Jalaur River multi-purpose irrigation project in Iloilo, according to the National irrigation Administration (NIA).
In a phone interview, NIA administrator Antonio Nangel said the agreement was signed in Malacañang last week between Finance Secretary Cesar Purisima and Export-Import Bank of Korea executive director Sang-Wan Byun. It was also witnessed by President Aquino, Korean Ambassor to the Philippines Hye Min Lee, Senator Franklin Drilon, and Agriculture Secretary Proceso Alcala.
The loan will finance the construction of a high dam and reservoir, catch dam, bay dam, high line canal, and penstock in Sta, Barbara Iloilo.
Nangel said the project would service 31,840 hectares of agriculture lands, covering 25 municipalities.
The project has a total budget of P11.2 billion, of which P8.96 billion would come from the Korean Eximbank loan proceeds while P2.26 billion will be the government’s counterpart fund.
Nangel said the irrigation project would double the rice production capacity of the province and enable farmers to cultivate two or more crops per year.
“The project also has a potable water component that will provide one cubic meter per second or 86,400 cubic meters per day for residents of Iloilo City,” he said.
Nangel said the projects is expected to be started in the first or second week of 2013 and completed by 2016.
The loan agreement extended by the Export Import Bank of Korea is so far the largest assistance provided by the Korean government to the Philippines through its Economic Development Cooperation Fund (EDCF)