October 10, 2024 | 12:00am
MANILA, Philippines — The Philippines and South Korea have signed financing agreements worth P60 billion for three infrastructure projects that will strengthen mobility in Luzon and Visayas.
In a statement, the Department of Finance (DOF) said it sealed three financing deals for a combined P60.16 billion.
The exchange of agreements was done between Finance Secretary Ralph Recto and Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok during the Philippine visit of South Korean President Yoon Suk Yeo earlier this week.
“Beyond enhancing mobility, they will create jobs, spur businesses, boost incomes and uplift Filipino lives – helping reduce poverty, especially in Luzon and Visayas,” Recto said.
One of the projects is the first phase of the Laguna Lakeshore Road Network, which will cover 37.6 kilometers of viaduct and embankment from Lower Bicutan, Taguig City to Calamba in Laguna.
The Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF) is allocating P50.61 billion for this project, out of the total cost of P181.03 billion.
The remaining P130.42 billion will be co-financed by the Asian Development Bank and the Asian Infrastructure Investment Bank.
The project will also cover the construction of eight interchanges proposed to connect municipal boundaries to the nearest public roads along Lower Bicutan, Sucat, Alabang, Tunasan, San Pedro/Biñan, Santa Rosa, Cabuyao and Calamba.
Once completed in 2028, the project will reduce travel time from Filinvest to Lower Bicutan to just 13.7 minutes from the previous 33.5 minutes.
The Philippines and South Korea also sealed the deal for a P6.34-billion financing agreement for the Samar Pacific Coastal Road II Project.
This project aims to provide a seamless connection between Laoang Island and the Samar mainland and contribute to the growth of Northern Samar.
It comprises two marine bridges – the Laoang II Bridge and Calamotan Bridge with a total length of 800 meters and 605 meters, respectively – and the improvement of existing roads with a total length of 15.011 kilometers.
Once completed in 2029, the project will reduce travel time from Laoang to Palapag to just 19 minutes from the original travel time of 65 minutes.
Lastly, the two countries agreed on the P3.21-billion KEXIM-EDCF financing for the conduct of the detailed engineering design of the Panay-Guimaras-Negros Island Bridges Project.
The detailed engineering design is eyed for completion next year.
The project in Western Visayas involves the construction of two sea-crossing, four-lane bridges spanning 32.47 kilometers combined – including connecting roads and interchanges – that will connect the islands of Panay, Guimaras and Negros.
Upon completion in 2031, the travel time of commuters and motorists and the transport of goods from Panay to Negros Islands through ferries will be shortened to less than an hour from the current three to four hours.
South Korea is the Philippines’ sixth largest official development assistance partner, with loan and grant commitments amounting to P54.33 billion.
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