Japan to extend P31.5-B in ODA to RP this year

The Japanese government will extend a total of ¥72.487 billion (approximately P31.5 billion) in official development assistance (ODA) to the Philippines this year, official documents show.

Japanese Ambassador Yoshihisa Ara in his letter to Vice President and Foreign Secretary Teofisto Guingona Jr. dated Feb. 13, said the ODA would specifically finance seven major infrastructure development projects under two Yen loan packages.

"It is my pleasure to inform you that the Government of Japan has decided to support seven projects amounting to ¥72.487 billion under the 25th Yen Loan Package and Special Yen Loan Package 4th Batch," Ara said.

He said the approval of the loan packages signifies the continuing support of the Japanese government to the Philippines.

"It is hoped that these projects will stand as a symbol of long-cherished and mutually beneficial friendship that our two countries enjoy," Ara said.

Under the 25th Yen Loan Package, the government of Japan will extend about ¥38.874-billion worth of financial assistance. This loan package would fund at least four infrastructure development projects such as construction of roads in the rural areas.

On the other hand, the Special Loan Package is expected to provide ¥33.163 billion.

Based on official documents, the bulk of the Special Yen Loan will go to Urgent Bridge Construction Project for Rural Development amounting to ¥10.4 + billion. This project will involve the construction of at least 200 bridges all over the country.

About ¥9.356 billion, meanwhile, will be allocated to Improvement of Maritime Disaster Response and Environmental Protection System project.

The third recipient of the Special Yen Loan will be the Northern Luzon Wind Power Project which will be granted some ¥5.857 billion.

According to Ara, Japan extends its ODA to support the economic development of the country.

The ¥5.857-billion Special Yen Loan will specifically fund the construction of a 40-MW wind power project of the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC).

The project involves the harnessing of strong winds in Northern Luzon. This natural source of power has a potential capacity of generating a total of 120 MW of electric power. The entire wind project, however, will be developed in three phases. The current assistance will finance Phase I of the project that will generate around 40 MW of power.

The Japanese government said it supports this project because this non-conventional source of power will enable the Philippines to save on much-needed foreign exchange that could be used instead for other urgent needs of the government.