The Philippines and China exchanged the agreements on Monday to finance a bridge connecting Davao City and Samal Island in the southern Philippines.

China's Ambassador to the Philippines Huang Xilian said he exchanged the signed framework agreement and loan agreement for the Davao City-Samal Island connector bridge project with Philippine Finance Secretary Carlos Dominguez.

"The first cross-sea bridge that the Davaoeno people have long dreamed of will come true," Huang said in a social media post.

Huang said the Chinese government will provide a concessional loan of approximately 350 million U.S. dollars to the Philippine government to finance the two-way four-lane 3.86-km bridge across the Pakiputan Strait.

"Once completed, this bridge will provide a resilient and reliable transportation link between Davao City and Samal Island, improving transportation efficiency, promoting internal mobility, (and) stimulating tourism potential," he added.

Moreover, he said the construction will create thousands of jobs, contribute to the local economic recovery and improve people's livelihood.