NEDA OKs PH-South Korea FTA, P63.2 billion in infra projects

The National Economic and Development Authority (NEDA) Board, chaired by  President Ferdinand “Bongbong” Marcos Jr., approved on Tuesday the issuance of an executive order (EO) implementing the commitments under the Philippines-South Korea Free Trade Agreement (FTA) and two major infrastructure projects worth P63.2 billion.

The FTA aligns with agreements made during the 2023 Indonesia discussions.  South Korea will grant preferential duty-free entry for 11,164  Philippine products, which account for $3.18 billion or 87.4% of South  Korea's total imports from the Philippines.

According to the Philippine Statistics Authority (PSA), South Korea ranked sixth among the largest importers of Philippine products, purchasing $293.43 million worth of goods in October.

South Korea was also the Philippines' third largest export partner, with South Korean exports to the country totaling $989.72 million.

“The [free trade] agreement will support government efforts to manage competition exclusion vis-à-vis 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,” NEDA said in an emailed statement.

Last May, Marcos said the ratification of the FTA with South Korea was expected within the year, with negotiations hammering out better terms of trade in sectors such as semiconductors, automotive parts, and fruits.

Approved infrastructure projects

The NEDA Board also approved the P37.5-billion Ilocos Norte-Ilocos-Sur-Abra Irrigation Project (INISAIP) of the National Irrigation Administration  (NIA), which is set to irrigate agricultural lands of up to 14,672  hectares during the wet season and 13,256 hectares during the dry season across the three provinces.

The project 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 linked irrigation canals serving as major irrigation systems.

It is also set 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 NEDA Board also greenlit the P25.7-billion Accelerated Bridge Construction Project for  Greater Economic Mobility and Calamity Response (ABC Project) of the  Department of Public Works and Highways which will see the construction of 29 bridges across the nation.

The project will be financed through an official development assistance (ODA) loan from the French government and will be accomplished in two components — one comprising seven long bridges from January 2025 to December 2029, and another consisting of 22 calamity response bridges from January 2025 to December 2027.
 
The Board also approved adjustments to five ongoing projects, including the project scope, cost, partial loan cancellation, and extensions of the  implementation period of loan validity:

• 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
• North-South Commuter Railway (NSCR) System Project – Malolos-Clark  Railway Project (MCRP), Tranche 1 of the Department of Transportation  (DOTr).

“Through these investment and infrastructure initiatives, we are advancing connectivity to enhance economic opportunities and ensure that progress reaches all regions of the country,” Balisacan said. — DVM, GMA Integrated News