On November 21, Korea Eximbank and the Ministry of Agriculture of the Republic of the Philippines concluded an MOU for EDCF support for construction of the Jalaur River multi-purpose dam.

Chairman Yong Hwan Kim of Korea Eximbank and Agriculture Minister Proceso J. Alcala signed the MOU at the presidential palace in Manila in the presence of President of the Philippines Benigno Simeon Cojuangco Aquino III and President of Korea Myung Bak Lee.

This project represents the first EDCF project for development of water resources and agriculture in the Philippines.

Once completed, the dam is anticipated to provide water for the 31,840ha breadbasket region of the Iloilo River and produce 6.6MW of electricity. Moreover, it is anticipated to improve the provision of drinking water and water for surrounding industries, prevent floods, and promote ecotourism.

After signing the MOU Chairman Kim stated, “I’m very pleased to provide a foundation for development support of large-scale agricultural infrastructure projects such as dams and waterways with the Philippines, our close ally during the Korean War and close partner for grant and credit assistance. I hope that this project will contribute to increasing production of agriculture and hydropower in the Philippines as well as further strengthen Korea’s image as a leading nation in green growth.”

The Philippine government plans to execute the Jalaur River Multi-Purpose Project through public-private partnerships (PPP).

If the Philippine government successfully attracts private investment for integration with EDCF support, a greater number of Korean companies will be able to enter local markets.

On the same day, the Ministry of Foreign Affairs concluded an inter-governmental Framework Arrangement with the counterpart ministry of the Philippines for USD 500 million in EDCF support by 2013.

Under the agreement, Korea Eximbank plans to actively support large-scale infrastructure development of roads, airports, power, dams, etc. in the Philippines through EDCF over the next three years.

The Bank has provided a total of KRW 379.6 billion in EDCF support as of the end of October for 15 projects in the Philippines including KRW 33.2 billion for the South Manila Commuter Rail Project and KRW 23 billion for the Widening of GSO Road and Emergency Dredging Project.