JDV optimistic RP can recover frozen $80-M Japanese aid

Speaker Jose de Venecia expressed yesterday optimism that the government — through the "decisive steps" of President Arroyo — can restore some $80 million in loans frozen in 2001 from the Japanese official development assistance (ODA) grants.

De Venecia made this projection as he led the Philippine delegation that visited Japan, where he is to meet Japanese Prime Minister Junichiro Koizumi as well as Japanese Emperor Akihito during a five-day official visit to Tokyo.

He said the President had already given instructions for the payment of P70 million to Japanese construction firms that will complete the value-added tax refund for VAT collected from the VAT-exempt firms.

In a statement issued from Tokyo, De Venecia hailed Mrs. Arroyo’s decision as a "decisive step that will lead to major, large-scale Japanese economic assistance to the Philippines." Japan is the "biggest provider of ODA, as well as a major source of foreign investment."

De Venecia was referring to the $600 million to $800 million in loans from the Japan Bank for International Cooperation (JBIC), which represents a major source of capital funds for the Philippines with 30 to 40 years’ repayment at an interest rate of less than one percent per annum.

He said these yen-denominated loans may be utilized for urgent infrastructure building and development and to fund various Philippine anti-poverty programs leading to the creation of thousands of jobs.

De Venecia addressed yesterday the Japan Institute of International Affairs (JIAI), the think tank of the Japanese Foreign Ministry, where he said Japan’s economic resurgence is beneficial to the entire Asian region.

Japan’s "return to the path of growth is bound to benefit the whole region," he said. "Now, Japan can become a growth engine for our countries all over again."

He also addressed the Japan-Philippines Parliamentarians Friendship League (JPPFL) led by former Japanese Foreign Minister Taro Nakayama, who chairs the committee currently at work on proposed amendments to the Japanese constitution.

"This is a landmark year in our bilateral relations," he said. Along with the United States, he said, Japan "is our most important trading partner." He added Japan-Philippine relations have continued to grow and widen in the spheres of political and security relations.

Security dialogues between the two countries have focused on common political and security concerns "not only with regional terrorism, transnational crime, disaster mitigation, and maritime and energy security but also with potential regional flashpoints," he said.

De Venecia also acknowledged Japan’s assistance in the Philippines’ capacity-building for maritime and aviation security, counterterrorism, and disaster management.