The Philippines and the United Kingdom signed the agreement to give priority Philippine programs and projects access to up to £5 billion in support from UK Export Finance (UKEF).
The agreement is aimed at expanding financial and trade cooperation between the two countries and providing a framework for UK financing, expertise, goods and services for projects under the Philippines’ development agenda.
The partnership was finalized by Finance Secretary Frederick D. Go, UK Trade Minister Lord Anas Sarwar and UK Ambassador to the Philippines Sarah Hulton.
Financing access
“We are opening new opportunities to bring financing, expertise, and partnership to projects that matter to the Filipino people,” Go said.
“This government-to-government Arrangement gives us a practical framework for financial and development cooperation. Ultimately, this partnership must translate into jobs, stronger businesses, better infrastructure, and broader opportunities for Filipinos,” he added.
Under the agreement, the two governments will identify strategic and commercially viable projects that could benefit from UKEF support and UK private-sector participation.
Potential areas of cooperation include the energy transition, sustainable transport, water and sanitation, aviation and social infrastructure.
The two countries have already begun discussing potential projects through the Infrastructure Sectoral Working Group of the Philippines-UK Joint Economic and Trade Committee.
UK expertise
Sarwar said the agreement would provide the Philippines with a route to access UK expertise, goods, services and financing while creating opportunities for British companies to participate in Philippine projects.
The partnership comes as the Philippines seeks to move toward upper-middle-income country status while sustaining investment, improving productivity and creating more jobs.
The UK’s membership in the Luzon Economic Corridor also opens opportunities for the two countries to combine financing, technical expertise and private-sector investment in connectivity, energy systems, digital infrastructure and advanced manufacturing supply chains across Luzon.
The Luzon Economic Corridor is envisioned as a platform for mobilizing investments in infrastructure and strategic industries on the country’s main island.
Economic ties
The agreement is also expected to deepen bilateral economic relations as the Philippines and the UK mark 80 years of diplomatic ties this year.
Go reaffirmed the Philippines’ commitment to strengthening its partnership with the UK and translating financing and investment opportunities into projects with tangible economic benefits.
The UK government, meanwhile, said the agreement forms part of its strategy to build government-to-government trade relationships that can support jobs and economic growth in both countries. —Ed: Corrie S. Narisma
