Korea's KEXIM Offers to Fund Philippine Infrastructure Projects Under Pres. Duterte

One of South Korea's largest financial institution, the Export-Import Bank of Korea (KEXIM), the official export credit agency of the government of South Korea, expressed willingness to allocate $1 billion in concessional loans over 6 years for possible funding of some key infrastructure projects of President Rody Duterte in the Philippines.

See Also: KEXIM to Finance New Cebu International Container Port Project

The Philippine government's National Economic and Development Authority (NEDA) said in a statement last June 7, that representatives of KEXIM met with the national government to discuss their proposed concessional loans for some of Pres. Duterte's major public infrastructure deals under the admin of Pres. Duterte.

KEXIM consulted with some Philippine agencies such as NEDA, Department of Finance, Department of Transportation (DOTr), Department of Energy, Department of Agriculture, Department of Public Works and Highways, Department of Information and Communications Technology, National Irrigation Administration, and National Electrification Administration.

NEDA did not divulge the specifics of the meeting with KEXIM but noted that they will prioritize projects under the transportation, information and communications technology, and energy infrastructure, because they considered it as South Korea had the comparative advantages in these sectors.

According to NEDA Undersecretary Rolando Tungpalan, the Duterte administration welcomed South Korea's offer of assistance, noting that this will boost the Philippine government's efforts to carry out its massive infrastructure program which requires roughly P8.4 trillion.

"We need to be ambitious, and at the same time we need to scale up our implementation capacity. Financing this 6-year infrastructure program will be sourced from domestic resources, Official Development Assistance, and public-private partnership programs," Tungpalan said.

Aside from the concessional loans offered by KEXIM, they will also offer a knowledge-driven economic cooperation program that will enable South Korea to share its successes and failures and propose applicable policy recommendations.

They also expressed willingness to assist in the Philippines' pre-investment activities, including project preparation, feasibility studies, and plans formulation, through the bank's Project Preparation Facility. The Philippine government under the Duterte admin and South Korea are set to finalize the framework agreement in August 2017.

Source: Rappler / PIA

Korea's KEXIM Offers to Fund Philippine Infrastructure Projects Under Pres. Duterte Korea's KEXIM Offers to Fund Philippine Infrastructure Projects Under Pres. Duterte Reviewed by Phil Newsome on 6/09/2017 Rating: 5

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