PRESS RELEASE
Department of Foreign Affairs
2330 Roxas Blvd., Pasay City, Philippines                *             Tel. No. 834-4000               *              www.dfa.gov.ph
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No. 272;  3 June 2003


 RP-ROK AGREEMENTS SIGNED

Seoul, Korea – Philippine Secretary of Foreign Affairs Blas F. Ople and South Korean Minister of Foreign Affairs and Trade Yoon Young-kwan today signed at the Cheong Wa Dae presidential palace a treaty on mutual legal assistance (MLAT) on criminal matters, arrangements for IT (information technology) and manpower development, and an agreement on economic assistance.

The signing of the documents was made in the presence of President Gloria Macapagal Arroyo and President Roh Moo-hyun after the bilateral meeting between the two heads of state.

MLAT

The treaty on mutual legal assistance aims to improve the effectiveness of both countries in crime prevention and investigation through the exchange of information, identification of persons and documents, and service of summons.   It will complement the extradition treaty signed between the Philippines and the Republic of Korea in 1994.

I.T.

The arrangements for IT and manpower development formalized the grant aid of the Korean government (total amount: US$10 million) for the establishment of an Information Training Center in Luzon and a Vocational Training Center in Davao City.  The grant of US$5 million per training center will cover the construction cost of the buildings, provision of equipment and the dispatch of Korean experts to the Philippines.

The training centers have great strategic value for the education and skills improvement of our young generation”, said Secretary Ople.  He added that the training centers would be excellent conduits for transferring the Republic of Korea’s success in human resource development.

The construction of the two training centers would begin in the second half of this year and is targeted for completion before the end of 2004.

Economic Assistance

The agreement on economic assistance manifests the Korean government’s commitment to extend loans to the Philippines through the Economic Development Cooperation Fund (EDCF).  The EDCF offers a three-year US$100 million loan assistance to the Philippines. The loan carries a 2-2.5% annual interest rate and 20-30 years maturity inclusive of 5-10 years grace period.

Projects under consideration for financing through the EDCF are the South Manila Commuter Rail Project, Phase I, and the Laguindingan Airport Development Project in Misamis Oriental.

The commuter rail project aims to enhance the public transportation system in Metro Manila and help decongest traffic by making the.  area south of Manila accessible.  It involves the procurement of railcars, installation of signals and communications systems, and strengthening of tracks and bridges from Tutuban to Alabang.

The airport development project involves the construction of a new international-standard airport in Laguindingan, Misamis Oriental to meet the increasing transportation demand and facilitate economic development in the region. END