29 June 2012, Business Mirror
by Jun Vallecera
Korea Export-Import Bank (Eximbank), which had committed $1.7 billion worth of loans and guarantees to the Philippines as of end-April this year, is interested in funding the governmentâ€™s infrastructure buildup program under the public-private partnership or PPP banner.
In addition, Park Tae-ik, Korea Eximbank chief representative, said on Thursday the state-owned funding agency looks to disburse $630 million more in loans and guarantees to Philippine enterprises before the year is out.
According to Park, their wish for PPP involvement could come in the form of official development assistance (ODA) loans for public-sector entities that want a piece of the action or in the form of financing privately held entities under South Koreaâ€™s Economic Development Cooperation Fund or EDCF.
Funding PPP-related projects, he said, would be on top of the $1.7 billion the Korea Eximbank has extended.
According to him, the bank had met with officials from the Philippinesâ€™s National Economic and Development Authority and the PPP Center that are on top of PPP projects.
Park said South Korea is keen in supporting projects and programs in the renewable-energy sector and natural- resources development.
He added that support under an EDCF window typically costs only 0.15 percent a year for a 40-year loan, which includes a 10-year grace period.
Park said South Korea plans to pour an additional $1.2 billion under the EDCF window this year.
â€śIn line with this, the disbursement of EDCF will amount to $560 million this year, which is more than a 20-percent increase compared to that in April 2011,â€ť he added.
Under the EDCF window, South Korea has financed 16 Philippine projects collectively worth $614 million as proposed earlier by the Philippine government under the countryâ€™s national development plan.
Dong-hun Lee, Korea Eximbank resident representative in Manila, said they have established a one-stop shop facility so that prospective PPP participants may breeze through the projects with ease and minimum discomfort.
29 June 2012, The Philippine Star
by Lawrence Agcaoili
MANILA, Philippines – The state-owned Export-Import Bank of Korea is eyeing further interest rate cuts to be extended under its concessional loan facility to proponents of major infrastructure projects under the public private partnership (PPP) scheme of the Philippine government.
Korea Eximbank chief representative of the Manila office Tae-ik Park said the bank recently revised the regulation for its Economic Development Cooperation Fund (EDCF) wherein untied aid through PPP schemes would be given a further interest rate cut of 50 percent.
The bank oversees the operation of the official development assistance (ODA) program under the EDCF facility. Loans under the facility usually carry an interest rate of 0.15 percent per annum payable in 40 years inclusive of a 10-year grace period.
Park pointed out that Korea Eximbank decided to further cut interest rates in support of the Philippine governmentâ€™s efforts to undertake much needed infrastructure projects and social services under the PPP program.
He explained that financial demand has been increasing due to the sovereign debt crisis in Europe and the economic uncertainty in the US but commercial banks are not willing to extend loans to big-ticket projects.
â€śWe would like to actively support economic and social infrastructure development projects implemented through PPP schemes, by establishing and strengthening channels with the Philippine government regarding PPP projects,â€ť he stressed.
He said Korea Eximbank has proposed the establishment of a PPP Consultative Group that would include the PPP Center of the Philippines as well as the National Economic and Development Authority (NEDA).
The Korean government has decided to increase its EDCF volume to $1.2 billion this year to 49 countries. EDCF disbursement is expected to increase by 20.7 percent to $560 million.
Park said the Philippines is the fifth largest recipient of EDCF after Vietnam, Indonesia, Sri Lanka, and Cambodia.
He said the Korean government is currently financing 16 projects in the Philippines worth $614 million that were proposed by the government in line with the National Development Plan.
According to him, both the Philippines and Korea concluded a framework arrangement worth $500 million for 2011 to 2013 last year due to increasing demand of development cooperation between the bilateral partners.
Big-ticket projects included the $208 million Jalaur River Multipurpose project and the $37.8 million Samar Pacific Coastal road project as well as the proposed $88.6 million Pampanga Flood Control project and the $25 million Baler-Casiguran road project.
He said EDCF priority sectors include green growth projects such as renewable energy, water supplies and waste water treatment, and solid waste treatment.
Park said the Korean government is now establishing a Country Partnership Strategy with the Philippines that would cover 2012 to 2015 to be finalized next month. The CPS would help allocate 70 percent of ODA budget to agriculture and water resources development, health and medical service, and socioeconomic infrastructure development.
Furthermore, he explained that Korea Eximbank have supported $1.7 billion for financing services in the Philippines of which $630 million as of April has yet to be disbursed.
So far, the bank has committed to provide comprehensive loans and guarantees amounting to $6.8 billion this year.
For his part, Korea Eximbank representative Dong-hun Lee said the bank could serve as a one-stop solution wherein the government could tap the EDCF facility while the private sector could avail of the financing services.
29 June 2012, InterAksyon.com
by Joseph Villanueva
MANILA – The Korea Export Import Bank is keen on helping fund some of the Philippines’ public-private partnership infrastructure projects.
In a briefing, Tae-ik Park, Korea Eximbank chief representative, said the agency would provide official development assistance for the Philippines’ PPP projects, particularly renewable energy and natural resources development.
Korea Eximbank plans to grant $630 million in guarantees and loans to Philippine firms by yearend.
The agency already committed $1.7 billion in loans and guarantees to the Philippines in the first four months of this year.
Park said he has met with officials of the National Economic Development Authority and the PPP Center for the purpose.
Dong-hun Lee, Korea Eximbank resident representative in Manila, said the agency already set up a one-stop shop for PPP participants.
Park said Korea’s Economic Development Cooperation Fund also could be tapped by private-sector participants of the PPP program. EDCF charges 0.15 percent a year for a 40-year loan.
Another $1.2 billion would be made available through the EDCF window this year.
â€śIn line with this, the disbursement of EDCF will amount to $560 million this year which is more than a 20 percent increase compared to that in April 2011,â€ť Park said.
The EDCF has financed 16 projects worth a combined $614 million.
29 June 2012, Philippine Daily Inquirer
by Michelle V. Remo
The Korean government, through state-owned Korean Eximbank, is keenly interested in financing public infrastructure projects being pushed by the Philippine government under its Public-Private Partnership (PPP) program.
Tae-ik Park, Korean Eximbankâ€™s chief representative to the Philippines, said that should the Philippine government decide to seek official development assistance (ODA) to fund the PPP projects, the Korean institution would be willing to offer it preferential interest rate.
Most ODAs to the Philippines carry an interest rate of 0.15 percent per annum payable in 40 years. Park said Korean Eximbank would be willing to cut the interest rate by half, or only 0.075 percent per annum, to fund the PPP projects.
â€śWe are very interested in PPP projects,â€ť Park said. â€śDemand for financing is huge, but because of the European debt crisis, many commercial banks worldwide are reluctant to extend loans for big projects. Korean Eximbank wants to fill in this gap in the Philippines.â€ť
Under the PPP program, the Philippine government has invited private firms to invest in vital public infrastructure projects by assuming the costs in full or in part.
Park said Korean Eximbank proposed the establishment of a â€śPPP Consultative Groupâ€ť to key economic officials of the Philippine government. The Korean agency said the group could be made up by representatives from the PPP Center of the Philippine government, the National Economic and Development Authority and the Korean Eximbank.
The group will be responsible for studying and deciding on PPP projects that the Korean government may help finance, Park explained.
Dong-hun Lee, another representative of Korean Eximbank, said the agency could help the government in meeting its share in project costs through ODAs.
Korean Eximbank may also help private sector investors in PPP projects by extending them non-ODA type of credit, he added.
â€śWe are, therefore, offering a one-stop solution for the Philippine governmentâ€™s PPP projects,â€ť Lee said.
Korean Eximbank is one of the Philippinesâ€™ ODA sources.
From 2011 to 2013, the agency has allocated $500 million for the Philippines, and may extend much more should the government decide to seek further assistance, Lee said.