The finance ministries of South Korea and the Philippines recently inked a Memorandum of Understanding (MoU), paving the way for Seoul to extend $2 billion in financial aid to Manila. This funding, provided through the Economic Development Cooperation Fund (EDCF)—a low-interest loan program aimed at bolstering infrastructure in developing nations—marks a significant collaboration between the two countries.
During Korean President Yoon Suk Yeol’s visit to Manila, it was announced that $905 million of this funding would be dedicated to building the initial segment of the Laguna Lake Road Network. This key infrastructure project will cover 37.5 kilometers of roads and dams along Laguna Lake, close to Manila. In a further boost to the region’s connectivity, an additional $1 billion is set aside for a 13-kilometer bridge that will link the central Philippine islands of Panay, Guimaras, and Negros.
This venture stands as the largest project financed by the EDCF in the Philippines to date, and it opens the door for Korean companies to bid on these pivotal contracts.
Moreover, the collaboration was further solidified with a $110 million loan agreement for the second phase of the Samar Pacific Coastal Road Project. This phase will see the construction of two new bridges and upgrades to existing roads in the southern region, enhancing infrastructure cooperation even further.
An additional MoU was also signed under the Economic Innovation Partnership Programme, which will assist the Philippines in developing e-government services and satellite communication networks over the next three years. This partnership underscores a shared commitment to technological advancement and economic development, fostering a stronger bond between the two nations.
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