09 August 2012, Malacañang Palace, Manila. Witnessed by His Excellency, President Benigno S. Aquino, III, the Governments of the Republic of the Philippines and Republic of Korea signed today the US$207.88 million Loan Agreement to support the implementation of the Jalaur River Multipurpose Irrigation Project Phase II of the Department of Agriculture National Irrigation Administration.

Finance Secretary Cesar V. Purisima signed the Loan Agreement with Export-Import Bank of Korea (KEXIM) Executive Director Sang-Wan Byun in the presence of President Benigno S. Aquino III, Ambassador of the Republic of Korea to the Philippines Hye Min Lee, Senator Franklin M. Drilon, and Agriculture Secretary Proceso J. Alcala.

The project entails the construction of a high dam and reservoir, afterbay dam, catch dam, high line canal and penstock in Sta. Barbara, Province of Iloilo. The project is proposed to provide year-round irrigation water to about 31,840 hectares of rice areas in Iloilo {i.e., 9,500 hectares of new irrigation areas and 22,340 hectares under the five (5) existing irrigation systems (as supplemental water)}.

The project is also expected to have as other incidental benefits the following: (i) flood mitigation and improvement of flood control systems; (ii) promotion of eco-tourism; (iii) additional livelihood opportunities through aquaculture; (iv) increased productivity of other crops; and (v) enhanced mobility of farm produce through the construction of access roads.

Since 1991, the KEXIM has provided the Philippine Government with highly concessional financing facilities to support critical public infrastructure projects.

Furthermore, the loan agreement marked the largest financing assistance extended for a single project by the Korean Government through its Economic Development Cooperation Fund to any country since its establishment in 1987 and the first agricultural/irrigation project to be supported by the latter in the Philippines.