INFRA PROJECTS. Department of Finance (DOF) Secretary Carlos Dominguez III (left) and Export-Import Bank of Korea (KEXIM) Chief Representative Sungho Jang shake hands during the ceremonial exchange of documents for the USD71-million Philippines-Korea Project Preparation Facility (PKPPF) at the DOF office in Manila Tuesday. The facility will be used to finance the feasibility studies, engineering designs, and safeguard assessment analyses for infrastructure projects. (Photo by Joann Villanueva)
MANILA -- Finance Secretary Carlos Dominguez III on Tuesday assured the judicious utilization of funds for infrastructure projects, citing that the “Build, Build, Build” projects will be the Duterte administration’s legacy.
In a briefing during the ceremonial exchange of documents for the USD50-million loan from the South Korean government Tuesday, Dominguez said from about PHP50-billion project line-up in the first year of the current government in 2016, the pipeline is seen to grow to PHP1.4 trillion by the end of its term in mid-2022.
“That is our legacy to the next administration. And we want to thank the people and the government of (South) Korea for supporting this pipeline of projects because these studies are essential to our being able to move our Build, Build, Build program forward and beyond the administration of President Duterte,” he said.
The government’s infrastructure program took a hit in 2019 because of the delay in the approval of last year’s national budget, which was only signed into law in April. Another reason is the ban on the implementation of infrastructure projects during the election period.
However, Dominguez expects the infrastructure program “to be firing on all cylinders” this year.
“The stage has been set. The national expenditure plan has been enacted on time this year. Our infrastructure agencies are poised to execute hundreds of infrastructure projects all over the country in the next few months,” he said.
Meanwhile, bulk or USD50 million of the USD71-million (PHP2.73 billion) Philippines-Korea Project Preparation Facility (PKPPF) will be funded by a loan from the Export-Import Bank of Korea (KEXIM) through Korea’s Economic Development Cooperation Fund (EDCF).
The balance will be provided by the counterpart fund from the Philippine government through the projects’ implementing agencies.
This loan is the second that was signed by executives from both governments under the USD1-billion pledge of the South Korean government as its official development assistance (ODA).
It has a zero-interest rate with a repayment period of 40 years, inclusive of a 10-year grace period. Service charges are set at 10 basis points of one percent of each disbursement.
Dominguez said the facility is a “big help” for the conduct of feasibility studies, engineering designs, and safeguard assessment analyses on the various infrastructure projects such as irrigation, flood control, and roads and bridges to be implemented by the National Irrigation Administration and the Department of Public Works and Highways (DPWH), among others.
“We thank the Republic of Korea for the staunch support it has extended in assisting our continued economic emergence. Please be assured that we will strictly monitor the projects so that no Korean taxpayers’ money is wasted and that the projects will bring lasting benefits to the Filipino people,” he added. (PNA)
