The Philippines is on the verge of securing a major government-to-government (G2G) partnership with the United Kingdom that would unlock access to a £5-billion funding facility from UK Export Finance (UKEF), British Ambassador to the Philippines Laure Beaufils announced during a media reception on Wednesday evening.
Ambassador Beaufils revealed that both governments are finalizing a memorandum of understanding (MOU) that will activate the UKEF funding, aimed at supporting key infrastructure projects in the Philippines, including railways, ports, roads, and bridges.
“We’re still finalizing a government-to-government MOU which will enable us to tap into that money… We hope that will happen over the course of the next three months,” Beaufils said.
A key condition for accessing the funding is that at least 20% of a project’s contract value must be sourced from the UK. In exchange, the UKEF facility offers flexible financial structures, such as bank loan support or guarantees, to ease procurement and acquisition of British goods and services.
“It’s really about supporting British exports to the Philippines… It can take the form of guarantees, or support for a loan from a bank. It could take lots of different forms,” Beaufils added.
The current UKEF allocation for the Philippines was increased from £4 billion to £5 billion, reflecting growing confidence in UK-Philippine trade ties.
Beyond infrastructure, the ambassador expressed optimism over continued growth in bilateral trade, which rose by 15% in 2024 to reach £2.8 billion. This potential G2G deal signals a strengthened economic partnership as both nations push forward with inclusive and sustainable development goals.