By Anna Leah Gonzales | Philippine News Agency
The Department of Finance (DOF) denied the existence of a P28 billion official development assistance (ODA) loan from South Korea.
The DOF made the statement Wednesday following reports that South Korean President Lee Jae-myung suspended the ODA due to corruption concerns.
“As regards [to] the supposed P28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said.
“Nevertheless, we reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” it added.
In another statement, the DOF explained that the P28 billion PBBM Rural Modular Bridge Project loan is currently being proposed to be funded by France and not South Korea.
“As part of standard practice, the Philippine government explores financing options with multiple development partners for key projects,” it said.
The DOF said the project was initially considered for funding through South Korea, but the Department of Agrarian Reform decided to halt previous discussions last year due to non-alignment on scope and other key technical specifications.
The DOF added that as early as the last quarter of 2024, the government already decided to look for other bilateral partners who can implement the full scope of the project.
“Hence, there is no existing loan for the said project with South Korea,” it said.
“The government is now in advanced negotiations with the French Government to finalize the project’s technical and financial terms,” the DOF added.
