The Philippines and Sweden signed a government-to-government financial and development cooperation agreement, the Department of Finance (DOF) said.
DOF Secretary Ralph Recto said the sealed agreement with Sweden would generate more investment that would benefit more Filipino people.
“I am proud to take our collaboration to the next level. We entered another agreement that will enhance the economic security of Filipinos through increased access to Swedish financing for our development initiatives,” Recto said during the ceremonial signing of the agreement.
Recto and Sweden Minister for Infrastructure and Housing Andreas Carlson signed the memorandum of understanding on financial and development cooperation on Nov. 22, 2024.
“In these times marked by your political uncertainty, it is the conviction of the Swedish government that we must do everything possible to foster strong partnerships for growth, prosperity, and security in our respective countries and around the world with trusted partners. The Philippines is one of the very important partners in the world,” Carlson said.
The MOU will provide an additional basis for the Philippine government to tap and access grants, technical assistance, concessional official development assistance and/or blended financing from the Swedish government for priority programs and projects of the country.
The high-impact sectors covered by the agreement—where Sweden has a comparative advantage—are sustainable infrastructure development, public transportation, renewable energy, and water and waste management, among others.
The projects in the pipeline include the EDSA Busway Project, the Iloilo Bus Rapid Transit, the Subic-Clark-Manila-Batangas Railway Project, the National Bus Standardization, the Hydropower Potential Resource Assessment and the National Power Corporation – Hybridizing Diesel Power Plants.
“All these will help us transition into a greener, healthier, and more sustainable future for our people,” said Recto.
Under the agreement, the Philippines will also gain access to the world-class expertise, technical know-how and innovative solutions of the Swedfund International AB and the Swedish Export Credit Corp. which will ensure the long-term sustainability and success of the projects undertaken.
These projects complement Sweden’s ongoing support to enhance the welfare and global competitiveness of Filipinos through partnerships in cancer care, defense and digitalization.
Recto noted the presence of around 40 major Swedish companies in the Philippines, including its largest IKEA store, which is a powerful testament to the confidence Sweden holds in the nation and the Filipino people.
“With this broad range of development areas, Sweden is certainly one of the Philippines’ strongest poverty-fighting allies, helping us build an inclusive economy for our citizens,” he said.
Recto assured the Swedish government that the DOF would be on top of the efficient implementation of the newly signed agreement, ensuring that all relevant agencies fully comply with the processes and protocols agreed upon.
“I am eager to see the concrete outcomes of this cooperation very soon and look forward to all that we can achieve together in the years ahead,” he said.
