The Philippines and Korea signed on Friday an agreement for a USD100 million loan that would boost the Philippine government’s ongoing nationwide coronavirus disease 2019 (Covid-19) vaccination program.
Finance Secretary Carlos Dominguez III, on behalf of the Philippines, and Country Chief Representative Jaejeong Moon, representing the Export-Import Bank of Korea – Economic Development Cooperation Fund (KEXIM-EDCF) signed the agreement for the second phase of the Program Loan for Covid-19 Emergency Response Program – Vaccination Program (PLCERP II). Korean Ambassador to the Philippines Kim Inchul attended the signing ceremony.
“This financial assistance from Korea will go a long way in helping the Duterte administration rev up its mass vaccination program against Covid-19 that is crucial to the strong rebound by our domestic economy come 2022,” Dominguez said.
Kim said he was happy to join the “meaningful” ceremony on the signing of the loan agreement.
“Through this agreement, Korea is able to make further contribution to the Philippine government’s tireless efforts to combat the pandemic and ultimately achieve early economic recovery,” he said, adding that Korea remains committed to supporting the Philippine government in fighting the pandemic.
According to the International Finance Group of the Department of Finance (DOF-IFG), the PLCERP II will help “secure financial sustainability and fill the budgetary gap” in implementing the Department of Health’s national Covid-19 vaccination program.
The DOF-IFG said the loan is designed to support the implementation, monitoring, and management of the ongoing vaccination drive.
In October last year, Korea extended a USD100 million loan to the government for the first phase of the PLCERP, which aimed to build systematic policy measures to respond to the Philippines’ public health challenges caused by Covid-19.
Korea extended the loan for PLCERP II in recognition of the Philippines’ accomplishments and plans under the first phase of the loan program, which focused on seven policy actions.
These include establishing a national policy or master plan for Covid-19 vaccination; assigning roles of major committees and/or organizations to expedite vaccine procurement and the administration process; profiling eligible populations and determining the priority groups; and securing Covid-19 vaccines approved by the Food and Drug Administration.
These policy actions for which the Philippine government was recognized also include establishing an effective mechanism for vaccine stock and logistics management; allocating budget for vaccine procurement; and setting up the guidelines to observe any adverse effects, and provide treatment and compensation for vaccines, the DOF-IFG said.
As with the first phase of the loan, the PLCERP II is payable in 30 years, inclusive of a 10-year grace period and with a fixed interest rate of 1.5 percent.
On top of providing funding support for the Philippines’ Covid-19 response, Korea has also extended a USD50 million loan to the Philippines-Korea Project Preparation Facility to bridge operational gaps in implementing projects under President Rodrigo Duterte’s signature “Build, Build, Build” infrastructure development program.
Korea has also shared its expertise and assistance in setting up an electronic invoicing system in the Bureau of Internal Revenue to improve tax administration.
It has committed Official Development Assistance loans to the Philippines amounting to USD1.25 billion as of 2020.
Through the KEXIM-EDCF, Korea intends to expand its assistance to the Philippines up to USD3 billion in the next five years.
Source: Philippines News Agency
