PH, Japan ink 5 loan deals worth P65B
The Philippines has sealed five financing agreements with Japan worth P65.4 billion to fund big-ticket infrastructure projects, as well as climate and universal health-care programs of the government.
The loan packages were signed by Filipino officials and representatives of the Japan International Cooperation Agency (Jica) during a high-level meeting in Manila yesterday, according to the Department of Finance (DOF).
“On the part of the Philippine government, we will honor this trust by ensuring that every peso, every yen and every commitment made today translates into real improvements to the people we serve,” Finance Secretary Ralph Recto said.
Three of the five loans were supplementary financing agreements for a bypass road project in Mindanao and two major flood control projects in Luzon.
One of the funding deals was for the P17.67-billion Davao City Bypass Construction Project, which seeks to improve mobility, facilitate trade and accelerate economic growth in Mindanao through the construction of a four-lane bypass road with a total length of 45.5 kilometers.
The Philippines and Japan also signed a loan for the P17.45-billion Pasig-Marikina River Channel Improvement Project Phase IV. This undertaking involves the establishment of dikes and revetments, as well as installation of flood gates and channel dredging to strengthen the flood management infrastructure in Metro Manila.
Programs
Meanwhile, the Cavite Industrial Area Flood Risk Management Project received a total financing of P5.52 billion from Tokyo. The project aims to mitigate flood damage in the lower reach of the San Juan River Basin and its adjacent Maalimango Creek Drainage Area.
The remaining two financing agreements were meant to provide budgetary support for government programs on health and climate change mitigation.
The DOF said the financing for the Climate Change Action Program, Subprogram 2 worth about P13.35 billion would equip the government with the financial capability to implement more climate adaptation, mitigation and disaster preparedness initiatives.
Health services
Lastly, the P11.44-billion loan package for the Build Universal Health Care, Subprogram 2 will help improve equitable access to quality health services that are also responsive to gender-specific health concerns and the health impacts of climate change.
Latest available data showed the Philippines’ portfolio of active official development assistance (ODA) stood at $37.29 billion in 2023, up by 15 percent year-on-year. That amount consisted of concessional loans worth $35.07 billion and $2.22 billion in grants.
In 2023, Japan held the largest share of ODA in the country at 32 percent, followed by the Asian Development Bank and World Bank.
