3 projects lined up for Jeximbank co-financing

The government has lined up three new projects to be co-financed by the Japan Export and Import Bank (Jexim) for this year and 2001, according to a study by the Asian Development Bank (ADB).

The proposed projects are the Mindanao Basic Urban Services Project which will start this year; Rural Electrification Project slated for next year; and the strengthening of subtransmission and distribution systems expected to be carried out on 2002.

Last year, Jexim had lined up co-financing programs for Graisn Sector Development Program, Pasig River Environmental Management and Rehabilitation and Transmission and Interconnection Reinforcement Project amounting to over $500 million.

The New Miyazawa Initiative and the Asian Growth and Recovery Initiative have provided important sources of co-financing which the government is keen to utilize to the maximum extent feasible.

Significant co-financing has been a regular feature of the annual loan programs in the past. This has included both official and commercial co-financing. In 1998, the official co-financing under the Miyazawa Initiative of $300 million each was arranged from Jexim and Overseas Economic Cooperation Fund, respectively for Power Sector Restructuring Program and Metro Manila Air Quality Improvement.

Aside from these, the Miyazawa Fund also co-financed the private sector development program for Development Bank of the Philippines amounting to $500 million and United Guarantee for Power Program for another $500 million. This brings the total Miyazawa co-financing fund to the Philippines to $3 billion.

The government is exploring the possibilities of tapping more commercial co-financing for future projects in the energy sector where high commercial returns make such co-financing investments attractive.