The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand R. Marcos Jr., approved the issuance of an executive order (EO) to implement the commitments under the Philippines-Korea Free Trade Agreement (PH-KR FTA) and two significant projects worth PHP63.2 billion to enhance agricultural productivity, regional connectivity, and economic activity in the country.
Signed on September 7, 2023 during the 43rd ASEAN Summit in Jakarta, Indonesia, the PH-KR FTA aims to strengthen economic relations between the two countries by facilitating trade and investment flows, removing barriers to market access, and creating new business and investment opportunities.
The agreement will support government efforts to manage competitive exclusion in relation to ASEAN neighbors, encourage more foreign direct investments, and secure more preferential concessions than those currently available under the ASEAN–Korea FTA and the Regional Comprehensive Economic Partnership Agreement.
In addition, upon implementation of the Agreement, Korea will grant preferential duty-free entry on 11,164 Philippine products accounting for USD3.18 billion or 87.4 percent of total Korean imports from the Philippines.
The Board also greenlit the PHP37.5-billion Ilocos Norte-Ilocos Sur-Abra Irrigation Project (INISAIP) of the National Irrigation Administration. This project is set to improve agricultural output and water management across the three provinces, irrigating agricultural lands up to 14,672 hectares during the wet season and 13,256 hectares during the dry season.
The INISAIP includes the construction of an earth and rockfill dam across the Palsiguan River in Abra, an afterbay dam in Nueva Era in Ilocos Norte, and various linked irrigation canals serving as major irrigation systems. Additionally, the project plans to incorporate renewable energy components, such as hydroelectric power plants and a solar power farm, through a public-private partnership.
“With a six-year implementation period, INISAIP will benefit approximately 32,604 families, significantly improving their livelihoods and fostering sustainable economic development in the Ilocos and Cordillera regions,” said NEDA Secretary Arsenio M. Balisacan, the Board’s vice chairperson.
The Board also approved the PHP25.7-billion Accelerated Bridge Construction Project for Greater Economic Mobility and Calamity Response (ABC Project) of the Department of Public Works and Highways (DPWH). This initiative aims to improve connectivity and disaster resilience by constructing 29 bridges nationwide.
Financed through Official Development Assistance (ODA) loan from the French government, the project is divided into two components. Component 1, comprising seven long bridges, is scheduled from January 2025 to December 2029. Component 2, consisting of 22 calamity response bridges, will run from January 2025 to December 2027.
Additionally, the Board approved adjustments to various parameters of five ongoing projects, including changes in project scope, cost, partial loan cancellation, and extensions of the implementation period and loan validity. These projects include the Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities (VISTA) of the Department of Agrarian Reform (DAR); Health System Enhancement to Address and Limit (HEAL) COVID-19 Project of the Department of Health (DOH); Panglao-Tagbilaran City Offshore Bridge Connector (PTCOBC) Project of the Department of Public Works and Highways (DPWH); Metro Manila Interchange Construction Project, Phase VI (MMICP VI) of the Department of Public Works and Highways (DPWH); and the North-South Commuter Railway (NSCR) System Project – Malolos-Clark Railway Project (MCRP), Tranche 1 of the Department of Transportation (DOTr).
