The Philippines has secured P65.43 billion in official development assistance (ODA) from Japan International Cooperation Agency (JICA) to finance big-ticket infrastructure projects and budget support for health and climate change initiatives.
The Department of Finance (DOF) secured the ODA loans during a high-level meeting between Philippine and Japanese officials in Manila on Monday, Finance Secretary Ralph G. Recto said in a statement.
The loan agreements were signed by Recto and JICA Country Chief Representative Baba Takashi.
“We are deeply grateful to the government of Japan for its confidence in our ability to turn these projects into realities,” Secretary Recto told the delegates as the meeting concluded, the DOF said.
“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,” he added.
Flood control
The loans also cover a bypass road project in Mindanao and two major flood control projects in Luzon.
The Davao City Bypass Construction Project (III), valued at P17.67 billion or JPY46.34 billion, is intended to improve mobility for Davaoeños, facilitate trade, and accelerate economic growth in Mindanao with the construction of a 45.5-kilometer, four-lane bypass road.
The Pasig-Marikina River Channel Improvement Project, Phase IV (II), was valued at P17.45 billion or JPY45.76 billion. The project is designed to reinforce the flood management infrastructure in Metro Manila. Construction of dikes and revetments, flood gates, and channel dredging is expected to boost the Metro’s flood control system.
The Cavite Industrial Area Flood Risk Management Project (II) also received financing of P5.52 billion or JPY 14.48 billion. This should mitigate flood damage in the lower reaches of the San Juan River Basin and the adjacent Maalimango Creek Drainage Area.
Budget-support financing
Recto said the signed agreements on two program budget-support financing should help the Philippines advance its health and climate change initiatives.
Financing for the Climate Change Action Program, Subprogram 2, valued at P13.35 billion or JPY35.0 billion, gives the Philippine government the financial capacity to enhance further its climate adaptation, mitigation and disaster preparedness initiatives.
For the Build Universal Health Care, Subprogram 2, the Philippines got P11.44 billion or JPY30.0 billion to improve equitable access to quality health services. These services are responsive to gender-specific health concerns and the impact of climate change on health.
High-level meeting
Senior Japanese officials led by Mori Masafumi, special advisor to the Japanese Prime minister, visited the Philippines to convene the 15th Philippines-Japan High-Level Joint Committee Meeting (HLJCM) on Infrastructure Development and Economic Cooperation.
The meeting is supposed to facilitate the roll-out of Japan-funded projects in the country.
Recto headed the Philippine delegation, along with National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan as co-chair.
During the high-level meeting, the Japanese government reaffirmed its commitment to supporting the Marcos administration’s “Build Better More” program and other key priority areas.
Recto said the status, implementation issues and ways to move forward in fast-tracking the roll-out of big-ticket projects funded by Japan were also part of their agenda.
These include the Metro Manila Subway Project (Phase I), the North-South Commuter Railway Projects, the Metro Rail Transit Line 3 Rehabilitation Project, the Dalton Pass East Alignment Road Project and the Metro Manila Priority Bridges Seismic Improvement Project.
Japan is also in talks with the Philippines to support the Central Mindanao High Standard Highway, the second San Juanico Bridge Construction Project, the Flood Control and Drainage Project in Davao City, the Paranaque Spillway Project, the National Public Broadcasting Digital Terrestrial Broadcasting Network Development Project, and the Magat Dam Reconstruction Project.
The high-level meeting also tackled updates on the Mindanao peace process, along with the progress on the sectoral cooperation in disaster risk reduction, maritime safety, regional development, Information and Communications Technology and energy transition.
