MANILA, Philippines — The National Economic and Development Authority (NEDA) Board has approved the issuance of an executive order (EO) for the implementation of the Philippines-South Korea free trade agreement (FTA).
In a statement, the NEDA said the NEDA Board chaired by President Marcos also gave the green light for two projects worth P63.2 billion to enhance agricultural productivity and regional connectivity during its meeting yesterday.
Signed in September last year, the FTA aims to strengthen the two countries’ economic ties by facilitating trade and investment flows, removing barriers to market access and opening new business and investment opportunities.
Under the FTA, South Korea will grant preferential duty-free entry on 11,164 Philippine products accounting for $3.18 billion or 87.4 percent of total South Korean imports from the Philippines.
It is expected to provide more preferential concessions than those currently available under the Association of Southeast Asian Nations – Korea FTA and the Regional Comprehensive Economic Partnership agreement.
One of the approved projects is the National Irrigation Administration’s P37.5-billion Ilocos Norte-Ilocos Sur-Abra Irrigation Project (INISAIP), which aims to improve agricultural output and water management in the three provinces.
It involves the construction of an earth and rockfill dam across the Palsiguan River in Abra, an afterbay dam in Nueva Era in Ilocos Norte and various linked irrigation canals serving as major irrigation systems.
In addition, the project will use renewable energy components such as hydroelectric power plants and a solar power farm through a public-private partnership.
“With a six-year implementation period, INISAIP will benefit approximately 32,604 families, significantly improving their livelihoods and fostering sustainable economic development in the Ilocos and Cordillera regions,” NEDA Secretary Arsenio Balisacan said.
Also approved was the P25.7-billion Accelerated Bridge Construction Project for Greater Economic Mobility and Calamity Response of the Department of Public Works and Highways aimed at improving connectivity and disaster resilience through the construction of 29 bridges nationwide.
The project, which will be financed through an official development assistance loan from the French government, has two components with Component 1, comprising seven long bridges, scheduled from January 2025 to December 2029.
Meanwhile, Component 2 covers 22 calamity response bridges and will run from January 2025 to December 2027.
In addition, the NEDA Board approved adjustments to the parameters of five ongoing projects, including changes in project scope, cost, partial loan cancellation and extensions of the implementation period and loan validity.
These projects are: the Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities; Health System Enhancement to Address and Limit COVID-19 Project; Panglao-Tagbilaran City Offshore Bridge Connector Project; Metro Manila Interchange Construction Project Phase VI and the North-South Commuter Railway System Project – Malolos-Clark Railway Project Tranche 1.
During the meeting, the NEDA also reported on the third quarter 2024 progress of the infrastructure flagship projects, particularly the recent completion of the Arterial Road Bypass Project Phase III (Plaridel Bypass) and the Panguil Bay Bridge.