NEDA Approves PH-South Korea FTA, P63.2 Billion in Infrastructure Projects

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

Philippines-South Korea Free Trade Agreement

The PH-South Korea FTA, aligned with agreements made during the 2023 Indonesia discussions, grants preferential duty-free access for 11,164 Philippine products, representing $3.18 billion or 87.4% of South Korea’s total imports from the Philippines.

South Korea is a key trade partner for the Philippines, ranking as the third-largest export destination and the sixth-largest importer of Philippine goods as of October, with exports reaching $293.43 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,” NEDA said.

Negotiations have focused on improving trade terms in high-priority sectors, including semiconductors, automotive parts, and fruits.

Approved Infrastructure Projects

The NEDA Board also approved:

• Ilocos Norte-Ilocos Sur-Abra Irrigation Project (INISAIP)
  Costing P37.5 billion, the project will irrigate up to 14,672 hectares in the wet season and 13,256 hectares in the dry season across the provinces of Ilocos Norte, Ilocos Sur, and Abra.
  • Key components include dams on the Palsiguan River and linked irrigation systems.
  • Renewable energy features, such as hydroelectric power plants and a solar farm, will be included through a public-private partnership.
  • The project will benefit 32,604 families, boosting livelihoods and economic sustainability in the Ilocos and Cordillera regions.
• Accelerated Bridge Construction (ABC) Project
  Valued at P25.7 billion, this initiative involves the construction of 29 bridges nationwide for enhanced mobility and calamity response.
  • Funded through an official development assistance (ODA) loan from France, the project includes seven long bridges (2025–2029) and 22 calamity response bridges (2025–2027).

Adjustments to Ongoing Projects

NEDA also approved modifications to five ongoing initiatives, including scope adjustments, partial loan cancellations, and extensions for:

• Value Chain Innovation for Agrarian Reform Communities (VISTA)
• HEAL COVID-19 Health System Enhancement Project
• Panglao-Tagbilaran City Offshore Bridge Connector (PTCOBC)
• Metro Manila Interchange Construction, Phase VI (MMICP VI)
• North-South Commuter Railway (NSCR) – Malolos-Clark Railway Project

Advancing Economic Development

“These investments and infrastructure initiatives aim to enhance connectivity, create economic opportunities, and ensure that progress reaches all regions of the country,” NEDA Secretary Arsenio Balisacan said.