The Governments of the Republic of the Philippines and Republic of Korea signed on 19 August 2013 a loan agreement to support the implementation of the Samar Pacific Coastal Road Project of the Department of Public Works and Highways (DPWH).

Finance Secretary Cesar V. Purisima signed the Loan Agreement on behalf of the Philippine Government while Export-Import Bank of Korea (KEXIM) Chairman and President Yong Hwan Kim signed on behalf of the Republic of Korea.

Under the loan agreement, the Republic of Korea, through KEXIM will provide an ODA loan under the Economic Development Cooperation Fund amounting to US$20.631 million to finance the construction of 14 kilometers of roads and 220 lineal meters of bridges that will traverse the coastal towns from San Policarpio to Palapag, Samar.

As approved by the NEDA Board, the linking of the so-called “Pacific towns” will complement and eventually establish a circumferential road loop for Samar Island, which is envisaged to enhance the development of potential agricultural lands and fishing grounds of the province and facilitate the movement of goods and services.

“We are grateful to the Korean Government, through KEXIM, for extending a highly concessional financing for this Project. Aligned with President Aquino’s vision of people-oriented infrastructure investment, the Samar Pacific Coastal Road Project will propel the development of the industries in Northern and Eastern Samar and accelerate the poverty alleviation efforts in the region,” Purisima said.

The Korean Government is supporting various priority development projects of the Aquino Administration, including the Jalaur River Multipurpose Project Stage II in Iloilo Province and the Puerto Princesa Airport Development Project. KEXIM also financed the construction and development of the Laguindingan Airport in Misamis Oriental, which was inaugurated last June 12, 2013.