South Korea Funds 3 PHL Infra Projects

Finance Secretary Ralph G. Recto sealed financing deals with the Government of Korea for three major infrastructure projects that will enhance mobility and support economic development in Luzon and Visayas.

The event was witnessed by President Ferdinand R. Marcos, Jr. and South Korean President Yoon Suk Yeol, who was on his state visit to the Philippines. I Photo: Department of Finance Facebook / Presidential Communications Office

“These projects are a testament to the strong friendship between the Philippines and South Korea. Beyond enhancing mobility, they will create jobs, spur businesses, boost incomes, and uplift Filipino lives—helping reduce poverty, especially in Luzon and Visayas,” Secretary Recto said during the ceremonial exchange of agreements for the projects with Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok.

The event was witnessed by President Ferdinand R. Marcos, Jr. and South Korean President Yoon Suk Yeol, who was on his state visit to the Philippines.

Among the projects sealed was the USD 111.427 million (about PHP 6.34 billion) financing agreement for the Samar Pacific Coastal Road II Project, which is supported by the Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF).

The project aims to provide a seamless connection for people and goods between Laoang Island and the Samar mainland and contribute to the growth of the Province of Northern Samar.

It comprises two marine bridges—the Laoang II Bridge and the Calamotan Bridge—with a total length of 800 meters and 605 meters, respectively, as well as the improvement of existing roads with a total length of 15.011 kilometers (km).

Once completed in 2029, the project will reduce travel time from Laoang to Palapag (Northern Samar) to just 19 minutes from the original 65 minutes.

Meanwhile, a Memorandum of Understanding (MOU) was also signed and exchanged for the Laguna Lakeshore Road Network Project Phase 1 (Stage 1) and the Panay-Guimaras-Negros Island Bridges Project.

The MOU serves as a document for cooperation between both governments relating to the prospective financing of these two projects.

With a total project cost of PHP 181.03 billion, Phase I of the proposed Laguna Lakeshore Road Network Project covers a 37.6 km viaduct and embankment from Lower Bicutan, Taguig City, to Calamba, Laguna.

It will also include the construction of eight interchanges proposed to connect municipal boundaries to the nearest public road 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, down from the previous 33.5 minutes.

The KEXIM-EDCF intends to support Stage 1 of the project, amounting to about PHP 50.61 billion, with co-financing from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

On the other hand, the interisland bridges project in Western Visayas involves the construction of two sea-crossing, four-lane bridges spanning a combined 32.47 km—including connecting roads and interchanges—that will connect the islands of Panay, Guimaras, and Negros.

Once the interlink bridges are completed in 2031, the travel time for commuters, motorists, and goods transport from Panay to Negros Islands, currently 3-4 hours by ferries or ro-ro, will be shortened to less than 1 hour.

With a total project cost of PHP 187.54 billion, the KEXIM-EDCF is currently financing the Engineering Service or Detailed Engineering Design for the project under a USD 56.61 million (about PHP 3.21 billion) financing agreement signed on April 10, 2022. The Detailed Engineering Design is expected to be completed in 2025.

To date, South Korea is the Philippines’ sixth-largest official development assistance (ODA) partner, with loan and grant commitments amounting to around USD 958.11 million (about PHP 54.33 billion).