Korea and Philippines Agree to Promote Mega Infrastructure Project

Memorandum of Understanding Signed for Laguna Lake Ring Road and Marine Bridge Construction Project

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok and Ralph G. Recto, Minister of Finance of the Philippines, signed a memorandum of understanding on the Laguna Lake Circumferential Road and PGN Sea Bridge construction projects at the Korea-Philippines summit held in Manila, Philippines, on the 7th.

[Image source=Yonhap News]

The agreed Laguna Lake Circumferential Road and PGN Sea Bridge infrastructure projects are landmark projects worth approximately 1 billion USD, the first of their kind under the Economic Development Cooperation Fund (EDCF), ranking first and second in scale in history. Both projects will be conducted through competitive bidding limited to Korean companies, supporting the expansion of Korean companies' entry into the Philippine and Southeast Asian infrastructure markets.

The Laguna Lake Circumferential Road Construction Project (Phase 1) involves building a circumferential road consisting of elevated roads and embankments along the western shore of Laguna Lake near the capital Manila. It is expected to address the rapidly increasing traffic demand and enhance growth potential. The Economic Development Cooperation Fund will support 905 million USD for Section 1 (7.9 km out of 37.5 km) of the entire project.

The PGN Sea Bridge Construction Project aims to build bridges connecting three islands in central Philippines: Panay, Guimaras, and Negros Islands. By constructing bridges in this region, which accounts for over 50% of the Philippines' tourism revenue, it is expected to improve transportation convenience between the islands, promote the development of the tourism industry, and enhance the living standards of local residents. The Economic Development Cooperation Fund plans to provide over 1 billion USD in support for the construction of the first bridge (Panay-Guimaras Islands, total 13 km), marking the first ultra-large project exceeding 1 billion USD in the fund's history.

Additionally, the loan agreement for the second phase of the Samar Coastal Road project was also signed during the bilateral summit. This project supports the construction of two new bridges and the rehabilitation of 13 km of road. The Ministry of Economy and Finance stated, “To fulfill our responsibilities as a global pivotal country, we have expanded and strengthened official development assistance (ODA), enabling support for projects exceeding 1 trillion KRW in a single scale,” and added, “We expect Korean companies to secure orders in follow-up projects as well, serving as a stepping stone for Korean companies’ entry into overseas markets.”