The Department of Finance (DoF) on Wednesday dismissed reports that South Korea suspended a P28-billion official development assistance (ODA) loan to the Philippines over corruption concerns, stressing that no such loan agreement exists.

“With regard 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 in a statement.

France, not South Korea

The agency added that the project in question – the P28 billion PBBM Rural Modular Bridge Project – is currently being proposed for financing through France, not South Korea.

“As part of standard practice, the Philippine government explores financing options with multiple development partners for key projects,” the DoF explained.

According to the department, the project was initially explored under a potential loan with South Korea.

However, discussions were halted by the Department of Agrarian Reform in 2024 after both sides failed to reach agreement on the project’s scope and technical requirements.

Advanced negotiations

The DoF said that by the last quarter of 2024, the government had already decided to pursue other financing sources and is now in advanced negotiations with the French government to finalize the project’s technical and financial terms.

“Nevertheless, we reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” the DoF concluded