SEOUL—The Philippines has discussed two infrastructure-related projects and a proposed revenue monitoring “infostructure” system in the pipeline with a total combined cost of $191 million for possible financing by South Korea, which has pledged up to $1 billion in official development assistance (ODA) to the Philippines on the Duterte watch.
Finance Secretary Carlos Dominguez III said he has also proposed that two to three other big-ticket projects under the “Build, Build, Build” program be funded from the balance of the ODA that South Korea has committed from 2017 to 2022, during a meeting here with Korea Deputy Prime Minister and Minister of Strategy and Finance Kim Dong Yeon.
The first project to be funded by the $1 billion ODA under the Philippines-Korea Framework Arrangement is the New Cebu International Container Port, with the Department of Finance (DOF) and the Export Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF) signing a $172.64 million loan agreement for this project.
The Framework Arrangement was signed last month between the Philippines and Korea, which has committed to double its ODA from $500 million from 2011 to 2013 to $1 billion from 2017 to 2022.
Another $191 million in financing for three other projects in the immediate pipeline under the $1 billion Framework Arrangement was discussed by Dominguez with Minister Kim during their Monday meeting.
These are the 1) $50 million Project Preparation Facility of the National Irrigation Administration, 2) the $100 million financing for the New Dumaguete Airport Development Project; and 3) $41 million for the implementation of an Electronic Receipt, Invoice and Sales Reporting System that will help the Philippines improve its revenue-monitoring mechanisms.
Minister Kim expressed his support for the e-governance project, which Dominguez said was part of the Philippines’ planned “infostructure,” as well as the Duterte administration’s Comprehensive Tax Reform Program (CTRP) during the meeting.
“He (Kim) hopes we complete the tax reform program successfully. He understands the importance of the tax reform program to the sustainability of our economic emergence,” Dominguez said in a press briefing here.
Dominguez said the Philippines will submit “as soon as possible” “two or three” other flagship projects under the “Build, Build, Build” program for Korea’s consideration, which would be funded from the balance of $636 million out of the $1-billion Framework Arrangement.
“I assured Deputy Prime Minister Kim our strict monitoring of the projects to make sure that none of the Korean taxpayers’ money is wasted and that all the ODA-supported projects will bring lasting benefits to the Filipino people,” said Dominguez, who was part of the official Philippine delegation of President Duterte in his official visit to South Korea.
Dominguez said he also discussed with Kim ways of speeding up the process for financing these proposed projects, after which both sides agreed to form a small cluster and hold more frequent consultations to ensure that their “priorities remain aligned” and project preparation and implementation issues are addressed thoroughly.
“We hope to get the projects running at the soonest possible time to support the rapid expansion of our economy,” Dominguez said.
During the meeting, Dominguez said he also presented to Kim a possible project for Korean assistance involving the preservation and protection of the ecological systems in high-density tourist areas in the Philippines such as Siargao Island.
On behalf of the Philippine government, Dominguez also thanked Seoul for its $6.6 million grant to improve the capability of the Philippine National Police, which included the supply of vehicles and training of police personnel.
Both sides also agreed to set up a knowledge-sharing and educational exchange program for Filipino and Korean students and possibly young government personnel from the Philippines’ Bureau of the Treasury.
During the meeting, Dominguez said he “expressed the gratitude of the Filipino people for the strong support South Korea is extending to our economic modernization.”
“South Korea is firmly committed to the Philippines’ economic emergence. We are ready to take our place as one of Asia’s tiger economies and we will forever be grateful for the generous partnership extended by the Korean people,” Dominguez said at the press briefing.
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