PH, UK secure £5-B G2G pact for infrastructure projects

The Philippines and the United Kingdom are nearing the completion of a government-to-government (G2G) partnership that would grant the country access to a £5-billion funding facility from UK Export Finance (UKEF), according to British Ambassador to the Philippines Laure Beaufils.

Details on the G2G Memorandum of Understanding (MOU)

Speaking at a media reception held at her residence on Wednesday evening, Beaufils revealed that both countries are finalizing a memorandum of understanding (MOU) to activate the funding, which is expected to support major infrastructure projects across the Philippines.

“We’re still finalizing a government-to-government MOU which will enable us to tap into that money because right now there are still some challenges to procurement. So, we hope that will happen over the course of the next three months or something,” Beaufils said.

She noted that the Marcos administration’s flagship infrastructure programs—such as railways, ports, roads, and bridges—could benefit from the UKEF facility, provided that at least 20 percent of each project’s contract value is sourced from the UK.

Allocation and Procurement Conditions

Beaufils added that the funding may come in various forms, including bank loan support or guarantees, making it easier for the Philippines to procure British goods and services.

“It’s really about supporting British exports to the Philippines, right? So, the 5 billion pounds can take the form of guarantees. It can be to support a loan from a bank. It could be taking lots of different forms to enable the Philippines to basically buy British products,” she added.

Trade Growth Prospects

The ambassador also pointed out that projects need only meet a minimum of 20 percent British content to qualify for full financing under the program. She noted that the UKEF facility had recently increased from £4 billion to £5 billion.

Beaufils expressed optimism that bilateral trade between the UK and the Philippines will continue to grow, citing a 15 percent increase in 2024, which brought the total trade value to £2.8 billion.

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