Korea and the Philippines have agreed to promote large-scale infrastructure projects in the Philippines using the Economic Cooperation Fund (EDCF).
The Ministry of Strategy and Finance announced the ‘Laguna Lake Ring Road’ and ‘PGN Marine Bridge Construction Project’ with Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok and Philippine Finance Minister Ralph Recto attending the Korea-Philippines summit held in Manila, Philippines on the 7th. It was announced that a memorandum of understanding had been signed.
The two countries also signed a loan agreement for the second Samar coastal road project.
The Laguna Lake Ring Road and PGN marine bridge infrastructure projects agreed upon this time are large-scale landmark projects worth $1 billion each, and are the first and second largest in EDCF history. EDCF is a loan fund that the Korean government lends to developing country governments on long-term, low-interest terms to support their economic and industrial development.
Both projects will be conducted through competitive bidding with construction companies limited to Korean companies, supporting the expansion of Korean companies’ entry into the Philippine and Southeast Asian infrastructure markets.
The Laguna Lake Ring Road Construction Project is a project to build a ring road consisting of an overpass and embankment along the western shoreline of Laguna Lake near Manila.
It is expected to improve economic growth potential by solving the rapidly increasing transportation demand in the vicinity, and EDCF will provide $905 million for one section (7.9 km out of 37.5 km) of the entire project section.
The PGN marine bridge construction project is to build a bridge connecting three islands (Panay, Guimaras, and Negros Island) in the central Philippines.
By constructing a bridge in the area, which accounts for more than 50% of tourism revenue in the Philippines, it is expected to improve the convenience of transportation between islands and at the same time develop the tourism industry and improve the living standards of local residents.
The Foreign Economic Cooperation Fund plans to provide more than $1 billion in support for the construction of the first bridge (Panay-Guimaras Island, total 13km). This is a mega-scale project exceeding $1 billion for the first time in the fund’s history.
The $110 million Samar Coastal Road 2nd loan contract supports the construction of two new bridges and the renovation of a 13km-long road.
The Ministry of Strategy and Finance said, “We will actively link the External Economic Cooperation Fund with external strategies to strengthen the foundation for cooperation with major recipient countries with high economic cooperation potential, such as the Philippines, and actively support the overseas expansion of Korean companies by discovering large-scale projects.”
Economy Queen Reporter Kim Jeong-hyeon
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2024-10-07 17:02:29