THE South Korean government has signed a two-year framework arrangement with the Philippines worth $300 million and a $20 million-worth Compact Loan Facility to be used for loans for various infrastructure projects of the government.

National Economic and Development Authority (Neda) South officials said this is the first time the Korean government has signed a framework with the country. Prior to the framework, the South Korean government extended financial assistance on a project-basis arrangement.

Under the framework for 2007 to 2009, the Economic Development Cooperation Fund (EDCF) will be the source of the funding while the Export-Import Bank of Korea will disburse the funds.

The repayment period for the loans is 30 years including a grace period of 10 years. The government will pay a 1.5- percent interest rate per annum for the loans that it will secure.

If the government fails to make the payment for all or any portion of the principal amount of the EDCF loan or any amount under the loan agreement, the unpaid amounts shall bear an overdue charge rate of 2 percent per annum and not including the interest rate of 1.5 percent.

Also stated under the agreement is that the supplier(s) of the goods and services, including consulting services needed for the implementation of the projects, will be selected from South Korean firms.

“The procurement or consulting contracts shall be concluded within 18 months from the effective date of the relevant loan agreement,” the agreement stated.

In the event that the loan allocated for each project will be insufficient for the implementation and completion of the project, the government can request for additional funds pending a formal approval from EDCF.

Meanwhile, the framework also includes a Compact Loan Facility under the EDCF worth $20 million. The loan facility will be allotted for loans of less than the equivalent of 2 million special drawing rights.

“The Korean Government shall establish a Compact Loan Facility for the EDCF in Korean won not exceeding the equivalent to $20,000,000 to be utilized by the Philippine Government, which shall account for a part of the maximum commitment amount specified in Article 1.1 of the Arrangement and may be adjusted with the consent of the Governments of the Republic of Korea and the Republic of the Philippines,” the framework said.

The terms for the Compact Loan Facility are the same as the framework except for the interest rate for projects to be funded under the loan facility which will be 0.1 percent per year.

The projects to be funded will be jointly evaluated and approved by the government and the EDCF on behalf of the South Korean government. Among the projects that are being eyed to be financed under the framework are the Gapan-San Fernando-Olongapo project Phase II and the Bacolod Silay Airport.

However, the Gapan-San Fernando-Olongapo project Phase II has not yet been approved by the Neda Investment Coordination Committee. Both projects have yet to be approved by the South Korean government for funding.

THE country’s poor may not only be poor by circumstance but by choice.

In his online column “Statistically Speaking,” National Statistical Coordination Board (NSCB) secretary-general Romulo Virola said poor and uninformed choices of Filipinos to have more children worsens poverty in the country.

THE South Korean government has signed a two-year framework arrangement with the Philippines worth $300 million and a $20 million-worth Compact Loan Facility to be used for loans for various infrastructure projects of the government.

SENATE leaders are inclined to slash the reported P13.5-billion budgetary insertions made by the House in the 2008 budget bill when the bicameral conference committee gets back to work to reconcile conflicting provisions in the Senate and House versions of the annual money measure, according to Senate President Manuel Villar Jr.

THE Bureau of Immigration (BI) has called upon the Department of Foreign Affairs and the Department of Tourism about changes in existing regulations of the Immigration to conform with the changing times and to encourage more foreign investors and tourists to come into the country.

SARA, Iloilo—Seeing better economic opportunity in a new corn seed technology, farmers in this chiefly agricultural town are now expanding to the upland areas, slowly turning the province into a major corn producer.

A SPANISH Chamber of Commerce Inc. member-business has bought the franchise of an American restaurant despite the latter posting declining sales.

THE United Nations Economic and Social Commission for Asia and the Pacific (Unescap) thumbed down the measures implemented by Asian governments, including those made by the Philippine government, to help exporters cope with weaker demand and stronger currencies.

Fortune Life Insurance Co., a Filipino-owned corporation and one of the leading insurance companies, is now accepting payment from its regular policyholders through the Banco de Oro On-Site Payment Facility.