PHL, Korea sign 5 agreements on trade, agriculture

The Philippines and Korea on Monday signed two agreements and three memorandums of understanding that are expected to strengthen the bilateral relationship and economic partnership between the two countries. Philippine President Benigno Aquino III and Korean President Lee Myung-Bak witnessed the signing of the documents after holding a bilateral meeting in Malacañang. 1. Grant Aid - Foreign Affairs Secretary Albert del Rosario and Minister for Foreign Affairs and Trade Kim Sung-hwan signed Framework Agreement for Grant Aid between the Government of the Republic of the Philippines and the Government of Republic of Korea. The agreement will facilitate the processing of grant projects by simplifying procedures and providing an overarching framework for defining the tax exemptions and privileges applicable to ROK/KOICA personnel and equipment brought in connection with grant projects. 2. Loans - The two foreign ministers also signed Framework Arrangement between the Philippines and Korea concerning loans from the economic development cooperation fund for the years 2011 through 2013. The agreement enables the Philippine government to obtain loans from Korea up to a maximum of $500 million. The loans will be extended to the Philippines from the Economic Development Cooperation und through the Export-Import Bank of Korea. In his speech, Aquino said the two agreements will “provide the framework for the growing volume of development assistance provided by Korea to the Philippines." 3. Power plant - Energy Secretary Jose Rene Almendras and Korea’s Minister of Knowledge Economy Hong Suk Woo signed the Memorandum of Understanding between the Department of Energy and the Ministry of Knowledge Economy. This MOU involves the setting up of a power plant in the Subic Bay Economic Zone using environment-friendly technology to address the medium-term and long-term projected electricity needs of the Luzon Grid 4. Multi-industry cluster project - The fourth document signed was MOU between the Department of Agriculture and the Korea’s Ministry of Food, Agriculture, Forestry and Fisheries on the Multi-Industry Cluster Project in the Philippines. Agriculture Secretary Proceso Alcala and Agriculture Minister Suh Kyu-yong signed the document on behalf of their respective governments. The multi-industry cluster project is public-private partnership whereby the efficient use of agricultural resources of both countries is promoted through the provision of the necessary technical, financial and other support to advance agricultural development and create employment. Aquino said this is in line with the Philippines’ target for rice self-sufficiency by the year 2013. “I am proud to say that the Republic of Korea counts among our most active partners in the agricultural sector," he said. 5. Jalaur River Multi-Purpose Project - The fifth document was the MOU between the DA and Export Import Bank of Korea on the Jalaur River Multi-Purpose Project Stage II which is a priority irrigation project of the Philippine government intended to significantly contribute to sustaining rice self-sufficiency level. The additional benefits of this project include electricity generation and potable water supply to the residents of Iloilo province. Lee is in the Philippines for a three-day state visit. He arrived Sunday and expected to leave Tuesday. Aquino and Lee will be attending the Korea-Philippines Business Forum-CEO Roundtable Meeting in Manila Hotel. The Philippine president will also be hosting a state dinner later in the day for Lee. Lee, during his visit to the country, would also offer a wreath at the statue of Philippine National Hero Jose Rizal at the Luneta Park, attend the Philippine-Republic of Korea Business Forum and a town hall meeting at the Ateneo de Manila University. - VVP, GMA News