The Department of Finance said Wednesday it secured funding from the Korean government for three major infrastructure projects aimed at improving mobility and boosting economic growth in Luzon and the Visayas.
“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,” Finance Secretary Ralph Recto said during the ceremonial exchange of agreements for the projects with Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok on Oct. 7, 2024.
President Ferdinand Marcos, Jr. and South Korean President Yoon Suk Yeol, who was on his state visit to the Philippines, witnessed the signing of the agreements.
Among the projects sealed was the $111.427 million (about P6.34 billion) financing agreement for the Samar Pacific Coastal Road II Project, which is being supported by the Export-Import Bank of Korea-Economic Development Cooperation Fund (KEXIM-EDCF).
The project aims to provide a seamless connection for the people and goods between Laoang Island and Samar mainland, and contribute to the growth of the Province 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 (km).
Once completed in 2029, the project will reduce travel time from Laoang to Palapag (Northern Samar) to just 19 minutes from the original travel time of 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 the cooperation between both governments relating to the prospective financing of the said two projects.
With a total project cost of P181.03 billion, Phase I of the proposed Laguna Lakeshore Road Network Project covers a 37.6 km of viaduct and embankment from Lower Bicutan, Taguig City to Calamba, Laguna.
It will also cover 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 by 2028, the project will reduce travel time from Filinvest to Lower Bicutan to just 13.7 minutes, from the previous 33.5 minutes.
The KEXIM-EDCF intends to support Stage 1 of the project amounting to about P50.61 billion, with co-financing from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
The interisland bridges project in Western Visayas involves the construction of two sea-crossing, four-lane bridges spanning 32.47 km combined—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 of commuters, motorists and transport of goods from Panay to Negros Islands through ferries or ro-ro will be shortened from 3-4 hours to just less than 1 hour.
With a total project cost of P187.54 billion, the KEXIM-EDCF is financing the conduct of the engineering service or detailed engineering design for the project under a $56.61-million (about P3.21 billion) financing signed on April 10, 2022.
The detailed engineering design is expected to be completed in 2025.
South Korea is the Philippines’ sixth largest official development assistance (ODA) partner with loan and grant commitments amounting to around $958.11 million (about P54.33 billion).
