JBIC cuts funding for RP projects this year

The Japan Bank for International Cooperation (JBIC) has slashed its development funding for the Philippines by nearly half this year.

Documents show that under the 26th Yen Loan Package, JBIC has approved funding for only four projects worth $151.41 million compared to last year’s $303.3 million under the 25th Yen Loan Package.

Officials explained that the reduction in the JBIC funding commitment was due to the failure of government implementing agencies to clear more projects for funding by removing right of way problems and other factors that cause the delay in the project implementation.

As of Jan. 15 this year, JBIC had approved funding for Phase 1 of the upgrading of the inter-urban highway system which would involve the construction of a two-lane bypass road in Plaridel extending up to 6.6 kilometers, including a 220-kilometer interchange.

This project would also involve the contruction of a two-lane bypass road in Cabanatuan for up to 11.3 kilometers and the construction of nine bridges. These two projects were estimated to cost $69.63 million.

JBIC also agreed to fund the $41.79 million Central Mindanao Inter-regional Circumferential Road Project that would rehabilitate about 129.65 kilometers of national roads in Cotabato.

This road would go through Cotabato, Upi, Lekak and Kalamansig in South Cotabato. It would also involve the construction of 5 new bridges and the reconstruction of 5 bridges.

Also approved for funding was the $29.16-million Social Fund for Peace and Development under the Autonomous Region of Muslim Mindanao (ARRM). JBIC‚s funding would form the parallel financing for two components of the ASFPD, specifically the Community Development Assistance and the Strategic Regional Infrastructure.

Lastly, JBIC also approved funding for Phase 2 of the Subic Bay Freeport Environment Management Project.

This project has four components, mainly the closure of the existing landfill in the special economic zone and the construction of a new landfill facility. The project would also involve the procurement of equipment and construction of a compost facility for the maintenance of public health and sanitation in the Freeport Zone.