The Philippines has signed four memoranda of understanding (MOU) for a US$1-billion official development assistance (ODA) from South Korea covering the areas of trade, transportation, science and technology, and renewable energy development.
Philippine President Rodrigo Duterte and Republic of Korea President Moon Jae-in witnessed the signing of the four loan agreements after their bilateral summit meeting during the former’s official visit to Seoul.
One of the MOUs is a loan agreement on the New Cebu International Container Port Project between the Philippine government and the Export-Import Bank of Korea. Another is between the Philippine Department of Transportation (DOTr) and the Ministry of Land, Infrastructure and Transport of Korea concerning cooperation in the field of transport.
The third is on scientific and technological cooperation between the Philippine Department of Science and Technology and the Ministry of Science and ICT of Republic of Korea; and the last MOU is between the Philippine Department of Trade and Industry and Korea’s Ministry of Trade, Industry and Energy on trade and economic cooperation.
The New Cebu International Container Port project, which will be constructed in Consolacion, Cebu, is expected to address growing volumes at Cebu International Port.
Philippine Ambassador to South Korea Raul Hernandez said the loan will come from South Korea’s Economic Development Cooperation Fund. Hernandez said South Korea is the seventh largest trading partner of the Philippines with trade relations totaling around $10.6 billion, and the fifth largest ODA partner of the Philippines, with about $570 million in loans and grants last year.
In a joint statement, Moon said the Philippines and South Korea will continue to develop their substantive cooperation “to ensure that the people of our two countries will be able to fully grasp the fruits of this cooperation.”
“In this regard, the two leaders agreed to significantly increase our bilateral trade volume that currently stands at approximately 15 billion dollars and to further expand the investment between our two countries,” he said.
The Korean leader stated that the Philippines is a key partner in implementing the New Southern Policy that his government is “vigorously carrying out.”
Moon said South Korea will actively participate in the national development of the Philippines.
“In particular, I look forward to seeing the Korean companies’ participation further expanded in the fields of transportation, energy and infrastructure through our cooperation in the new industries such as infocommunications as well as science and technology,” he said.
