The Philippines and Korea signed Friday an agreement for a US$100-million loan that will provide a big boost to the Philippine government’s ongoing nationwide COVID-19 vaccination program.
Finance Secretary Carlos Dominguez III, on behalf of the Philippines, and Country Chief Representative Jaejeong Moon, representing the Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF) signed the agreement for the second phase of the Program Loan for COVID-19 Emergency Response Program—Vaccination Program (PLCERP II). Kim Inchul, Ambassador of the Republic of Korea to the Philippines attended the signing ceremony.
“This financial assistance from Korea will go a long way in helping the Duterte administration rev up its mass vaccination program against COVID-19 that is crucial to the strong rebound by our domestic economy come 2022,” Secretary Dominguez said.
Ambassador Kim said, “I am happy to join this meaningful ceremony of signing the loan agreement. Through this agreement, Korea is able to make further contribution to the Philippine government’s tireless efforts to combat the pandemic and ultimately achieve early economic recovery.” He added that Korea will continue to remain committed to support the Philippine government in fighting the pandemic.
According to the International Finance Group of the Department of Finance (DOF-IFG), PLCERP II will help “secure financial sustainability and fill the budgetary gap” in implementing the Department of Health (DOH)’s national COVID-19 vaccination program.
The DOF-IFG said the loan is designed to support the implementation, monitoring, and management of the ongoing vaccination drive.
In October of last year, Korea extended a US$100-million loan to the government for the first phase of the PLCERP, which aimed to build systematic policy measures to respond to the Philippines’ public health challenges caused by COVID-19.
Korea extended the loan for PLCERP II in recognition of the Philippines’ accomplishments and plans under the first phase of the loan program, which focused on seven policy actions, including: 1) establishing a national policy or master plan in connection with COVID-19 vaccination; 2) assigning roles of major committee and/or organizations to expedite the vaccine procurement and administration process; 3) profiling eligible population and determining the priority groups; and 4) securing COVID-19 vaccines approved by the Food and Drug Administration (FDA).
These policy actions for which the Philippine government was also recognized likewise include: 5) establishing an effective mechanism for vaccine stock and logistics management; 6) allocating budget for vaccine procurement; and 7) setting up the guidelines to observe any adverse effects, and provide treatment and compensation for vaccines, the DOF-IFG said.
As with the first phase of the loan, the PLCERP II is also payable in 30 years, inclusive of a 10-year grace period and with a fixed interest rate of 1.5 percent.
On top of providing funding support for the Philippines’ COVID-19 response, Korea has also extended a US$50-million loan to the Philippines-Korea Project Preparation Facility (PK-PPF) to bridge operational gaps in implementing projects under President Duterte’s signature infrastructure development program “Build, Build, Build.”
Korea has also shared its expertise and assistance in setting up an electronic invoicing system in the Bureau of Internal Revenue (BIR) to improve tax administration.
Korea has already committed Official Development Assistance (ODA) loans to the Philippines amounting to US$1.25-billion as of 2020. Through the KEXIM-EDCF, Korea intends to expand its assistance to the Philippines up to US$3-billion in the next five years.
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