Japan lends P65 billion to Philippines for infrastructure, climate change

MANILA, Philippines — The Philippines and Japan have signed P65 billion worth of loan financing for five projects aimed at boosting infrastructure and climate change initiatives in the country.

During a high-level meeting of the two governments yesterday in Manila, Finance Secretary Ralph Recto and Japan International Cooperation Agency country chief representative Baba Takashi led the signing of loan agreements amounting to JPY 171.58 billion or roughly P65.43 billion.

This was conducted on the sidelines of the 15th Philippines-Japan High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation as part of efforts to expedite the rollout of Japan-supported projects in the Philippines.

Recto and Takashi signed the financing for the third phase of the Davao City Bypass Construction project worth JPY 46.34 billion (P17.67 billion).

The country’s first-ever long-distance mountain tunnel in the Philippines is aimed at enhancing connectivity and accessibility in Davao City.

The construction of a four-lane bypass road with a total length of 45.5 kilometers is expected to improve mobility in Davao, facilitate trade and accelerate economic growth in Mindanao.

The two governments likewise inked the JPY 45.76 billion (P17.45 billion) loan for the fourth and final phase of the Pasig-Marikina River Channel Improvement project.

The project aims to strengthen the flood management infrastructure in Metro Manila through the establishment of dikes and revetments, installation of flood gates and channel dredging, among others.

The fourth phase covers structural and non-structural measures that will mitigate flood damage in the capital caused by channel overflow of the Pasig-Marikina River, thereby facilitating urban development and enhancing the sustainable environment along the river.

Japan also extended JPY 35 billion (P13.35 billion) in loans for the Climate Change Action Program-Subprogram 2 to equip the government with the financial capability to implement more climate adaptation, mitigation and disaster preparedness initiatives.

Similarly, JPY 30 billion (P11.44 billion) was lent for Build Universal Health Care Subprogram 2 to improve equitable access to quality health services that are also responsive to gender-specific health concerns and the health impacts of climate change.

Further, the Cavite Industrial Area Flood Risk Management project received financing worth JPY 14.48 billion (P5.52 billion) to help mitigate flood damage in the lower reaches of the San Juan River Basin and its adjacent Maalimango Creek Drainage Area.

During the meeting, the Japanese government reaffirmed its commitment to supporting the administration’s Build Better More program and other key priority areas.

Both countries discussed the status, implementation issues and ways forward to fast-track the rollout of the big-ticket projects funded by Japan.

These include the first phase of the Metro Manila Subway Project, North-South Commuter Railway, the Metro Rail Transit Line 3 Rehabilitation, the Dalton Pass East Alignment Road and the Metro Manila Priority Bridges Seismic Improvement.

Japan is also in talks with the Philippines to support the construction of the Central Mindanao High Standard Highway, the second San Juanico Bridge, the flood control and drainage system in Davao City and the Parañaque Spillway as well as the development of the National Public Broadcasting Digital Terrestrial Broadcasting Network and reconstruction of the Magat Dam, among others.