The Department of Finance (DOF) on Wednesday dismissed reports that the Philippines had secured a P28-billion official development assistance (ODA) loan from South Korea to fund the so-called PBBM Rural Modular Bridge Project, insisting “no such loan exists.”
In a statement, the DOF clarified that while South Korean President Lee Jae Myung recently ordered the suspension of the project over alleged fraud and corruption risks, the Philippine government had not entered into any financing agreement for the initiative.
“With regard to the supposed P28 billion ODA loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the agency said.
The DOF also stressed that Manila remains committed to maintaining transparency and accountability in its dealings with foreign partners. “We reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” it added.
South Korea’s suspension of the bridge program followed an audit that flagged the project as “fraudulent.” Initially valued at US$510 million, the project was scaled down to US$80–100 million and cut from 350 bridges to 70, reportedly under political pressure in Seoul.
While President Lee emphasized that no loans or subsidies had been disbursed, his remarks fueled speculation in Manila that an ODA loan had been canceled. The DOF’s statement sought to put those claims to rest.
The Korean Embassy in the Philippines has yet to release its own statement on the matter.