Sunday, March 29, 2020
Korea to Support Philippines’s Port Project with US$173 Mil. in EDCF Funds
US$1 Bil. to be granted to the Philippines
Korea to Support Philippines’s Port Project with US$173 Mil. in EDCF Funds
  • By Michael Herh
  • June 6, 2018, 20:21
Share articles

The Philippines will improve its marine transportation by expanding its port infrastructure with the Economic Development Cooperation Fund (EDCF) support from South Korea.
The Philippines will improve its marine transportation by expanding its port infrastructure with the Economic Development Cooperation Fund (EDCF) support from South Korea.

The Export-Import Bank of Korea announced on June 5 that the state-run bank inked a loan grant contract with the Department of Finance of the Philippines on June 4 to support the Cebu New Port Construction Project with US$173 million in the Economic Development Cooperation Fund (EDCF) funds.

The agreement was signed shortly after a summit meeting between Korean President Moon Jae-in and Philippine President Rodrigo Duterte in Seoul. It is the first loan grant agreement based on the US$1 billion Korea-Philippines EDCF agreement that will hold from 2017 to 2022. It is the first time that the EDCF is used to support a port construction project.

The Philippines is a nation comprised of about 7,000 islands. Due to its geographical nature, most of the nation’s logistics depends on maritime transportation. So, it is important to expand the nation’s port infrastructure in order to achieve sustainable economic growth. In particular, Cebu Port which handles 11% of the nation’s total cargo volume is in dire need for port expansion due to its poor infrastructure.

If US$173 million in EDCF funds is granted to the Philippines, the nation will improve its marine transportation conditions through the expansion of its port infrastructure. In the end, the funds will generate direct and indirect job creation effects thanks to the growth of the Philippine industrial and economic sectors.

Eun Sung-soo (right, front row), president of the Export-Import Bank of Korea, and Carlos Dominguez, secretary of finance of the Philippines, pose for a photo after signing a loan agreement at the Blue House on June 4 in the presence of President Moon Jae-in (right,) and Rodrigo Duterte, president of the Philippines
Eun Sung-soo (right, front row), president of the Export-Import Bank of Korea, and Carlos Dominguez (left, front row), secretary of finance of the Philippines, pose for a photo after signing a loan agreement at the Blue House on June 4 in the presence of President Moon Jae-in (right, back row) and Rodrigo Duterte, president of the Philippines.