The Department of Finance (DOF) is set to implement approximately $1.5 billion-worth of pipeline projects in collaboration with the Japan International Cooperation Agency (JICA) for 2024 to 2025.
Additionally, the DOF said in a statement yesterday it is working towards executing four major loan agreements with JICA within the year.
The said development was discussed during a meeting between DOF undersecretary for the International Finance Group Joven Balbosa and JICA’s director general of Southeast-Asia and Pacific Department Hayakawa Yuho last April 18 at the JICA Office in Washington, D.C.
Specifically, the DOF and JICA have talked about executing a pipelined commitment of around 227.6 billion yen, or around $1.5 billion, from April 1, 2024, to March 31, 2025.
The expected annual average pipeline over a five-year period running until 2027 is about 249.2 billion yen, or roughly $1.6 billion.
During the meeting, Balbosa reaffirmed the strong partnership between the Philippine government and JICA, acknowledging Japan as the country’s largest official development assistance (ODA) partner with $12.3 billion net commitments or 32.82 percent share of total ODA as of December 2023.
The DOF and JICA also discussed the timeline and preparations required to facilitate the signing of the loan agreements for projects on maritime safety, roads and flood risk management, which are targeted before the end of the year.
Aside from the usual portfolio of infrastructure projects funded by JICA, the agency shared that it is expanding into other sectors that are in line with the administration’s development objectives, such as agriculture, education and health.
The JICA likewise expressed its openness to scale up its policy-based lending, with an intent to co-finance the Climate Change Action Program (CCAP), Subprogram 2 with the Asian Development Bank and Agence Franí§aise de Développement.
The CCAP will support the Philippines in implementing its national climate policies, including its Nationally Determined Contribution. The program will intensify efforts to transform key sectors toward a climate-resilient and low-carbon economy.
Moreover, both parties engaged in an in-depth discussion on project implementation issues, to which they committed to maintaining open dialogue and addressing any delay to improve overall project management and minimize costs to the government.
The DOF also sought JICA’s assistance in bringing in more private sector financing to support the administration’s development goals as the Philippines transitions to an upper-middle income country status, which would mean it would gradually move away from concessional financing.
