Philippines, South Korea conclude agreement on loans from EDCF

May 5, 2018

Foreign Secretary Alan Peter Cayetano and South Korea Ambassador Han Dong-man signed Friday the framework arrangement between the Philippines and South Korea concerning loans from the Economic Development Cooperation Fund for 2017 through 2022 at the Department of Foreign Affairs.

The agreement will allow the Philippine government access to a loan facility from South Korea’s Economic Development Cooperation Fund (EDCF) up to a maximum amount equivalent to one billion US dollars for the years 2017-2022.

This new agreement effectively doubles the previous 2011 commitment amount of $500 million, and extended the time for availment from three years (2011-2013) to five years (2017-2022).

“I welcome the Republic of Korea’s heightened engagement in the Philippines’ development as evident in this newly signed framework arrangement. We note and highly appreciate the confidence that the government of the Republic of Korea has shown by doubling the previous amount and duration of access from the previous Framework Arrangement which was signed in November 2011,” Cayetano stated.

Recent major projects funded by the EDCF are the Panguil Bay Bridge connecting Tangub City and the Municipality of Tubod; the Puerto Princesa Airport Development Project that improved the existing airport in Puerto Princesa through the construction of a new passenger terminal complex; and the Samar Pacific Coastal Road Project creating an inter-provincial link that completed the circumferential road loop of Samar Island.

The EDCF was established by the Korean Government in June 1987 under the Ministry of Strategy and Finance (MoSF) and is being administered by the Export-Import Bank of Korea (KEXIM). Through the EDCF, bilateral loans were offered to the Philippines as early as 1988.

The Republic of Korea was the 6th largest source of ODA among all partners (bilateral and multilateral) with $ 570.60 million of active ODA, broken down as US $470.74 million and $89.86 million for loans and grants, respectively. DMS