Phl gets P23.63-B ODA loan from Japan

MANILA, Philippines - The Philippines has received P23.63-billion loan from the Japanese government as official development assistance (ODA) loan.

The loan will support the efforts of the Philippine government in achieving inclusive growth, as embodied in the Philippine Development Plan (PDP) 2011-2016, for the improvement of traffic and transportation network.

The loan is broken down into P23.183-billion loan for two projects and P446 million in the form of two grants.

The loans were allocated for improvements in Light Rail Transit (LRT) Lines 1 and 2 and the construction of the Bohol International Airport.

Known as the Capacity Enhancement of Mass Transit Systems in Metro Manila Project, the improvements to the mass transit system will get P18.557 billion.

It will be used to acquire new coaches, improvement of current facilities related to LRT-1 south extension and extension of LRT-2, and thereby contributing to the mitigation for road congestion in Metro Manila, air pollution and climate change.

The New Bohol Airport Construction and Sustainable Environment Protection Project gets the other portion of the loan amounting to P4.626 billion.

The project will put up a new international airport in Panglao Island, replacing the Tagbilaran airport. The airport will improve convenience and safety in air transportation thus contributing to sustainable development in the area.

Meanwhile, the first grant worth P383 million will find its way to the Mini-Hydro power Development Project in the province of Ifugao.

The grant will be used to construct a 810-kilowatt (kw) mini-hydropower plant in Ifugao. The project will help to promote usage of domestic resources of renewable energy, to sustain rice terrace conservation and carbon dioxide reduction.

The Mini-Hydro Power Development Project in the province of Isabela, meanwhile, will result in a 45-kw micro-hydropower plant using the existing irrigation system in Isabela. It received the balance of P63 million from the grant.

It is also expected to promote usage of domestic resources of renewable energy, to contribute to energy diversity and to CO2 reduction.

The grant aid projects are in line with financial assistance aiming to accelerate developing countries measures against climate change.

“Japan will cooperate with the Philippines in the issue of climate change for pursuing a fair and effective international framework with the participation of all major emitters,” the Japanese government said in a statement.