SEOUL, South Korea -- The Philippines has discussed two infrastructure-related projects and a proposed revenue monitoring “infostructure” system in the pipeline with a total combined cost of USD191 million for possible financing by South Korea, which has pledged up to USD1 billion in official development assistance (ODA) to the Philippines on the Duterte watch.
During a meeting here with Korea Deputy Prime Minister and Minister of Strategy and Finance Kim Dong Yeon, Philippine 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,
The first project to be funded by the USD1 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 USD172.64 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 USD500 million from 2011 to 2013 to USD1 billion from 2017 to 2022.
Another USD191 million in financing for three other projects in the immediate pipeline under the USD1 billion Framework Arrangement was discussed by Dominguez with Minister Kim during their Monday meeting.
These are the 1) USD50 million Project Preparation Facility of the National Irrigation Administration, 2) the USD100 million financing for the New Dumaguete Airport Development Project; and 3) USD41 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 to 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 USD636 million out of the USD1-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 Rodrigo Duterte in his official visit to South Korea.
Dominguez said he also discussed with Kim ways to speed 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. (PR)
