December 17, 2024 – The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand R. Marcos, Jr., approved the issuance of an executive order to implement the commitments under the free trade agreement between the Philippines and Korea and two significant projects worth PHP63.2 billion to enhance agricultural productivity, regional connectivity, and economic activity in the country.
Approved during the Board’s 23rd meeting and the last for 2024 held on Tuesday (December 17), the Executive Order (EO) will cover the country’s tariff commitments under the Philippines-Korea Free Trade Agreement (PH-KR FTA). 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 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.
In addition, upon implementation of the Agreement, Korea will grant preferential duty-free entry on 11,164 Philippine products accounting for USD 3.18 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. 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 are:
1. Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities (VISTA) of the Department of Agrarian Reform (DAR);
2. Health System Enhancement to Address and Limit (HEAL) COVID-19 Project of the Department of Health (DOH);
3. Panglao-Tagbilaran City Offshore Bridge Connector (PTCOBC) Project of the Department of Public Works and Highways (DPWH);
4. Metro Manila Interchange Construction Project, Phase VI (MMICP VI) of the Department of Public Works and Highways (DPWH); and
5. North-South Commuter Railway (NSCR) System Project – Malolos-Clark Railway Project (MCRP), Tranche 1 of the Department of Transportation (DOTr).
Meanwhile, NEDA reported on the third quarter 2024 progress of the Infrastructure Flagship Projects (IFPs) under the Build-Better-More Program. Two newly completed projects were reported: the Arterial Road Bypass Project Phase III (Plaridel Bypass) and the Panguil Bay Bridge.
The Plaridel Bypass, inaugurated on October 10, 2024, expanded a 22.46-kilometer road from two to four lanes, featuring 10 bridges, three flyovers, and improved drainage. The bypass benefits around 15,000 motorists daily, easing traffic congestion and boosting socioeconomic growth.
The Panguil Bay Bridge, completed on October 31, 2024, connects Tangub City in Misamis Occidental and Tubod in Lanao del Norte. Funded through Korean ODA, the bridge significantly enhances regional connectivity and economic development in Mindanao, reducing travel time from two and a half hours to just seven minutes.
“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.
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