ASEAN KEY DESTINATIONS
PHL, South Korea to sign $1.7-B credit facility
The South Korean government is making available to the Philippines a $1.7 billion credit facility and $7 million in for the Duterte administration’s priority programs in the energy, transport, and information and communications technology sectors.
The financial instruments would be made available via the Export-Import Bank of Korea (KEXIM), which manages South Korea's Economic Development Cooperation Fund (EDCF)—an official development assistance facility, The Department of Finance (DOF) said on Wednesday.
The DOF said the signing ceremony for the South Korean loan facility will take place on the sidelines of the 31st ASEAN Summit next week.
Under the credit facility, the Philippines can tap a $100-million Project Preparation Facility, which is available at zero interest and payable in 40 years including of a 10-year grace period, the DOF said.
"The KEXIM credit line can also be tapped via a tied loan facility with South Korean companies entering into joint ventures with Philippine local firms," it said.
The Project Preparation Facility can be tapped by the Department of Public Works and Highways and the National Irrigation Administration for infrastructure projects.
“A country program mission from KEXI-EDCF that was here from August 29 to 31 met with Philippine officials and identified the priority sectors of ICT, transport and energy for possible loan assistance from South Korea,” the DOF said.
Other Philippine agencies with projects in the pipeline for the KEXIM loan facility are the Department of Information and Communications Technology, Department of Agriculture, Department of Transportation, and the National Electrification Administration.
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