The Ministries of Finance of South Korea and the Philippines have formalized a Memorandum of Understanding (MoU) in which Seoul will extend financial assistance of $2 billion to Manila through the Economic Development Cooperation Fund (EDCF). This low-interest loan initiative is aimed at boosting infrastructure projects in developing nations.
As reported by Yonhap News Agency, the MoU was signed during the recent visit of Korean President Yoon Suk Yeol to Manila. It stipulates that the Korean government will allocate $905 million from the fund for the construction of the initial segment of the Laguna Lake Road Network.
Infrastructure projects
This segment will cover 37.5 kilometers of roads and dams surrounding Laguna Lake, located near Manila. Furthermore, $1 billion is earmarked for the development of a 13-kilometer bridge that will link the central Philippine islands of Panay, Guimaras, and Negros.
Largest projects funded
These initiatives mark the largest projects financed by the Economic Development Cooperation Fund in collaboration with the Philippines, enabling Korean firms to compete for the associated contracts.
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Additional agreements
In addition, the two ministries have signed a $110 million loan agreement for the second phase of the Samar Pacific Coastal Road Project. This phase will involve the construction of two new bridges and the rehabilitation of existing roads in the southern region, further enhancing infrastructure cooperation.
Economic innovation partnership
Moreover, an MoU was also established for the Economic Innovation Partnership Programme, which aims to assist the Philippines in developing e-government services and satellite communication networks over the next three years.
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