MANILA, Philippines — The Philippines has signed an agreement with the Republic of Korea that allows Manila to borrow up to $3 billion from 2022 to 2026 for infrastructure and road projects.
According to the Department of Foreign Affairs, the newly signed deal is worth three times more than the 2017 to 2022 term agreement.
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“As we welcome commitments in infrastructure and road network developments, the Philippines also welcomes the ROK’s intention to significantly increase its ODA (Official Development Assistance) on climate and green-related areas by 2025,” Foreign Affairs Secretary Enrique Manalo said during the signing ceremony held Wednesday.
“This runs along our country’s trajectory for green projects that will provide more focused support to climate change response for economic development.”
The agreement will help fund the Panay-Guimaras-Negros Island bridges project, which would connect the three islands via two bridges spanning 32.47 kilometers in total. It will also be used to build the road along the coastal areas of Mandaue, Consolacion, and Liloan in Cebu province.
The loan will also finance the Ilocos Norte and Abra Irrigation Project.
South Korea was the Philippines 6th largest ODA partner in 2021. With Seoul’s help, the country was able to fund projects such as the P11.2-billion Jalaur River Multipurpose Dam, the P9.2-billion construction project in the Cebu International Port to help with congestion, and the two-lane bridge across the Panguil Bay worth P7.4-billion that helped connect Misamis Oriental and Lanao del Norte.