PH requests $3 billion ODA from South Korea – Manila Bulletin

The Department of Finance (DOF) has renewed an agreement allowing the Marcos administration to access official development assistance (ODA) from South Korea under its Economic Development Cooperation Fund (EDCF) for the government’s infrastructure program.

The DOF said in a statement that Finance Secretary Benjamin E. Diokno and South Korean Deputy Prime Minister Kyungho Choo officially exchanged the final draft of the framework arrangement for the EDCF.

The renewal of the framework agreement will allow the Philippine government to access up to $3 billion in official development assistance (ODA) from the EDCF from 2022 to 2026.

The DOF said this would be funded by the Korean government through its Ministry of Economy and Finance.

According to the DOF, this proposed new fund is in addition to the billion dollars that the South Korean government has previously committed under an ongoing framework agreement for 2017 to 2022.

Diokno said the ODA will be used to fund the Marcos administration’s infrastructure development plan called the Build, Better, More program.

“We express our deepest gratitude to South Korea – one of our greatest [Official Development Assistance (ODA)] vendors – for their continued support of the administration’s Build Better More program,” Diokno said.

The renewed framework agreement for 2022 to 2026 is expected to be signed at a later date, the DOF said.

South Korea is one of the largest ODA providers to the Philippines, with loan and grant commitments amounting to approximately $850.88 million.

Besides South Korea, the Japanese government had also pledged continued support for the Philippine government’s infrastructure push under the Marcos administration.

Diokno said Japan’s Ambassador to the Philippines, Kazuhiko Koshikawa, reaffirmed Tokyo’s strong economic partnership with Manila during their recent meeting.

In particular, Diokno said Japan is committed to supporting President Marcos’ infrastructure development program.

“The Ambassador reiterated Japan’s continued support for the massive infrastructure program of the Philippines, the development of Subic Bay and Mindanao, and other sectoral cooperation in the fields of health, energy, agriculture and ICT, among others,” said Diokno.

Japan’s financial contribution to the nation-building efforts of the Philippines under the previous Duterte administration reached 1.38 trillion yen, well above the 1 trillion yen mark set by the late Japanese Prime Minister Shinzo Abe. in 2017.

Japan is also the largest ODA provider to the Philippines, which has committed loans and grants amounting to approximately $10.2 billion, or 31.8% of the country’s total ODA portfolio. in December 2021.

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