The Governments of the Philippines and South Korea have signed a memorandum of understanding (MOU) to provide USD2 billion in financial assistance aimed at supporting major infrastructure projects. This aid will be delivered through the Economic Development Cooperation Fund (EDCF), a low-rate loan program designed to assist developing countries.
Under the agreement, USD905 million will be allocated for the construction of the first section of the Laguna Lakeshore Road Network, which will include 37.5 km of roads and embankments along Laguna Lake near Manila. Additionally, USD1 billion will fund the construction of a 13-km-long bridge connecting the islands of Panay, Guimaras, and Negros.
This initiative represents the largest EDCF project in the Philippines to date, with bidding opportunities open to South Korea-based companies. The two governments also finalised a USD110 million loan agreement for the second phase of the Samar Coastal Road project, which involves constructing two new bridges and upgrading existing roads.
Furthermore, another MOU was signed under the Economic Innovation Partnership Program to assist the Philippines in developing electronic government services and satellite communication networks over the next three years.
