The Philippines and Japan yesterday signed an agreement for a 30 billion yen loan, or roughly equivalent to P12.3 billion, in support of the Philippine government’s continuing recovery efforts from the coronavirus disease 2019 (COVID-19) pandemic and fully return to the path of high and inclusive growth, the Department of Finance (DOF) said.
In a statement, the DOF said Finance Secretary Carlos Dominguez and Akihiko Tanaka, the new president of the Japan International Cooperation Agency (JICA), signed the agreement for the second phase of the COVID-19 Crisis Response Emergency Support Loan (CCRESL 2) on behalf of the governments of the Philippines and Japan, respectively.
According to the DOF, the second phase of the CCRESL was signed between the two countries in recognition of the Philippines’ accomplishments and plans in vaccinating its target population against COVID-19 and expanding the capability of its health care system to meet the challenges of possible public health emergencies in the future.
The CCRESL 2 package carries concessional lending terms of 0.01 percent fixed interest rate per annum with a maturity period of 15 years, inclusive of a four-year grace period, the same as with the first CCRESL.
The first phase of the CCRESL worth 50 billion yen was signed between the two countries in July last year to assist the Philippine government’s efforts to contain the spread of COVID-19 and provide economic relief to Filipinos hit the hardest by the pandemic.
Dominguez said Japan remains to be the Philippines’ biggest provider of official development assistance, with JICA, its foreign assistance arm, being an extremely reliable partner in helping implement the priority programs of the Duterte administration.
Dominguez added that Shinichi Kitaoka’s support as the outgoing JICA president to the Philippines’ development agenda has translated into more than one trillion yen-worth of financing for, among others, the Build, Build, Build program.
Dominguez also cited Japan’s assistance to the Philippines’ pandemic response which, apart from loans and grants, included the donation of more than three million doses of AstraZeneca COVID-19 vaccines.
“The support continues with today’s signing of this 30 billion- yen loan agreement to aid the Philippine government’s COVID-19 response measures. As we intensify our climate action projects, we hope to also secure additional financing for natural and health-related disaster response programs,” Dominguez said.
Meanwhile, in a separate statement, the DOF announced the official endorsement of the Subic Bay Regional Development Master Plan, which was finalized with the assistance of a survey mission team of JICA and that will serve as a blueprint to maximize the economic development potentials of Subic Bay and its surrounding areas.
The joint effort of the Philippines and Japan to formulate a regional development master plan for Subic Bay commenced with the decision by the two countries’ leaders in November 2019 and the Memorandum of Cooperation to that effect in Hakone, Japan in December 2019.
The finalized master plan was furnished by Japanese Ambassador to the Philippines Kazuhiko Koshikawa to Dominguez last April 7 in Manila.
According to the DOF, the master plan envisages Subic Bay region’s economic future and concrete development proposals in both public and private sectors, with which the Philippine government unlocks the full potentials of Subic Bay, including the port capacity and the connectivity with its hinterlands, with a view to helping continued efforts to decongest Metro Manila.
The DOF said Hayashi expressed hope the publication of the master plan proves to be conducive to the enhancement of regional connectivity and coast guard capabilities of the Philippines.
The finalized master plan has covered possible development projects in the fields of road network for Olongapo’s central business district and Subic Bay West Coast, logistics terminals such as Alava Wharf, among others, and public utilities such as the Philippine Coast Guard’s new support facilities, the DOF said.
