THE NATIONAL ECONOMIC AND Development Authority (NEDA) The board approved two on Tuesday projects worth P63.2 billion, as well as the release of an executive order (EO) who will implement the tariff obligations under the Philippines-South Korea Free Trade Agreement.
The EO will cover Manila’s tariff obligations under the Philippines-South Korea Free Trade Agreement (FTA), which was signed last September. NEDA Secretary Arsenio M. BaliSacan said in a statement.
South Korea is the Philippines’ third-largest source of imports, accounting for $989.72 million or 8.3% of Philippine imports in October this year, the Philippine Statistics Authority reported earlier this month.
Seoul is also the sixth largest destination for Philippine exports.
Total trade between the two countries reached $12 billion last year.
Mr. Balisacan said that after the implementation of the FTA, South Korea will grant preferential duty-free access to 11,164 Philippine products worth $3.18 billion.
These products account for 87.4% of South Korea’s total imports from the Philippines, he added.
Mr. Balisacan said the Philippines-South Korea Free Trade Agreement will help Manila address its lagging trade competitiveness in the region and “secure more preferential concessions” than those currently available under the ASEAN-Korea Free Trade Agreement and the Regional Comprehensive Economic Partnership Agreement, which is touted as the world’s largest free trade agreement.
The FTA was signed by the two countries on the sidelines of the 43rd ASEAN Summit in Jakarta, Indonesia in September 2023. The Philippine Senate ratified the deal in September this year, while South Korea’s National Assembly gave the green light last month.
Meanwhile, the NEDA board, chaired by President Ferdinand R. Marcos, Jr., also greenlit the National Irrigation Administration’s Ilocos Norte-Ilocos Sur-Abra Irrigation Project worth P37.5 billion, which should “improve agricultural production and water management around the world.” the three provinces,” said Mr. Balisacan.
The project, which will irrigate agricultural lands up to 14,672 hectares during the wet season and 13,256 hectares during the dry season, includes the construction of an earth and rock dam across the Palsiguan River in Abra, a back bay dam in Nueva Era in Ilocos Norte, and several interconnected irrigation canals that serve as major irrigation systems.
“In addition, the project plans to incorporate renewable energy components, such as hydroelectric power plants and a solar farm, through a public-private partnership,” the NEDA said.
The Council also approved the Department of Public Works and Highways (DPWH) P25.7 billion Accelerated Bridge Construction Project for Greater Economic Mobility and Calamity Response, which aims to improve connectivity and disaster resilience by building 29 bridges nationwide.
The project, which is financed by an Official Development Assistance loan from the French government, is divided into two components, with the first involving seven long bridges and scheduled for implementation from January 2025 to December 2029.
The second part, which consists of 22 emergency bridges, will be implemented from January 2025 to December 2027.
Meanwhile, the NEDA board has approved adjustments to various parameters of five ongoing projects, namely:
• Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities from the Ministry of Agrarian Reforms;
• Improving the healthcare system to address and mitigate the Ministry of Health’s COVID-19 project;
• DPWH’s Panglao-Tagbilaran City Offshore Bridge Connector Project;
• Metro Manila Interchange Construction Project, Phase VI of the DPWH; And
• North-South Commuter Railway System Project – Department of Transportation Malolos-Clark Rail Project, Tranche 1.
The projects had changes in project scope, fees, partial loan cancellation and extensions of the implementation period and the validity of the loan.
NEDA also reported the completion of the Arterial Road Bypass Project Phase III (Pridel Bypass) and the Panguil Bay Bridge.
“Through these investment and infrastructure initiatives, we are promoting connectivity to expand economic opportunities and ensure that progress reaches all regions of the country,” Mr. Balisacan said. — Kyle Aristophere T. Atienza