$1.7-B credit line from S. Korea eyed

Public infrastructure projects can tap a $1.7-billion credit facility as well as nonlending programs to be made available by South Korea to the Philippines, the Department of Finance said.

In a statement, the DOF said the South Korean government offered to support energy, information and communications technology, and transport projects through the Export-Import Bank of Korea (Kexim).
Kexim oversees South Korea’s official development assistance (ODA) facility called Economic Development Cooperation Fund.

“Among the financial tools the Philippines can tap from South Korea is a $100-million credit line for a project preparation facility. It is available at zero interest and payable in 40 years, including a a 10-year grace period,” the DOF said.

“The project preparation facility can be tapped by the Department of Public Works and Highways and the National Irrigation Administration for their infrastructure projects,” the DOF added, quoting a report of its international finance group to Finance Secretary Carlos Dominguez III.

Other agencies such as the Departments of Agriculture, Information and Communications Technology and Transportation, and the National Electrification Administration are also eyeing Kexim loans.

South Korean firms in joint venture with local companies can also tap Kexim’s credit line through a tied loan facility, it said.

Besides the credit facility, South Korea is also extending $7 million under a nonlending program, the DOF said.

The loan agreements will be signed on the sidelines of the Asean Summit in Manila.