RP nears full availment of 27th Yen package

The government has come one step closer to fully availing itself of the 27th Yen Loan Package from Japan after the disagreement between two Cabinet officials on how the money is to be used has been finally resolved, Socioeconomic Planning Secretary Romulo L. Neri said yesterday.

Neri said the 26th yen loan package is ready for disbursement after two ranking government officials agreed on the Pasig River Project.

"The project is okay. As far as I know, there are no more problems there," Neri said.

The Pasig river project, the last under the 26th Yen Loan Package, was delayed for at least six months because two Cabinet members disagreed on how the funds allotted for river cleanup should be used.

Delay in the project’s implementation has pushed back the funding of other government projects under the 27th Yen Loan Package. Affected projects include the Cebu South Coastal Road Project Segment 3B-2 (Tunnel Section), the Infrastructure Logistics Assistance Facility and the Environmental Development Program, the Pinatubo Hazard Urgent Mitigation Project Phase 3 (Phump-3) and the Tanaon Geothermal Plant under the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC).

Yen loan packages are concessional official development assistance loans from the Japanese government coursed through the Japan Bank for International Cooperation (JBIC). They have long-term payment periods of 30 years with a grace period of 10 years.

The last loan package committed by the JBIC was in 2003, amountingto ¥13.401 billion (about P5.9 billion). The JBIC is the Philippines’ biggest donor, accounting for 61 percent of total official loan commitments.

With NEDA obtaining the approval of all officials involved, Neri said he is confident the the Pasig-Marikina River Channel Improvement Project (PMRCIP) which aims to mitigate the frequent inundation or massive flooding caused by the overflowing of the river can now be started.

The P4.608 billion clean-up project will be financed by the government of Japan’s Special Term for Economic Partnership (STEP). Total foreign cost is P2.419 billion while local cost is P2.189 billion.

The PMRCIP will also involve drainage improvement in the areas surrounding the river as excess water from these places end up in the river further contributing to the overflow. The project study also proposes to undertake an excavation of 15,000 cubic meters of soil deposits covering the stretch from Del Pan Bridge to the Napindan Hydraulic Control Structure in order to prevent flooding.

NEDA said upon completion of the project, the overflowing of the river may be prevented even during heavy rains. This means that the flooding in the area will be lessened significantly.

Aside from reducing the incidence of flooding, the PMRCIP aims to improve the carrying capacity of the river not to mention enhancing the river’s environment and aesthetic conditions, controlling the spread of water borne disease and improving the river’s water quality.