RP, Japan to ink loans, grant worth over P22 billion

MANILA, Philippines – The Philippines and Japan will sign two yen loans and one grant aid project worth Y44.91 billion (approximately P21.70 billion) and Y1.013 billion (approximately P488.94 million), respectively, during the official visit of President Arroyo to Japan from June 17 to June 20, the Department of Foreign Affairs (DFA) said yesterday.

The DFA said the yen loan projects are the Agricultural Credit Support Project (ACSP) and the Logistics Infrastructure Development Project (LIDP) while the grant aid project involves the Project for Flood Disaster Mitigation in Camiguin Island.

The agreements will be signed by Foreign Affairs Secretary Alberto  Romulo and Japanese Foreign Minister Hirofumi Nakasone on Thursday right after the President’s bilateral meeting with Japanese Prime Minister Taro Aso.

Amounting to Y14.61 billion (approximately P7.05 billion), the ACSP aims to increase investments, create new job opportunities, and improve agricultural productivity in the rural areas in the Philippines by providing loan funds directly from Landbank of the Philippines (LBP) or through its conduits to the following agricultural clientele: small farmers and fisherfolk (SFF) individuals/groups, small and medium enterprises (SMEs), and large agribusiness enterprises. 

The Y30.38-billion (approximately P14.65 billion) LIDP is an investment financing facility proposed by the Development Bank of the Philippines (DBP) which can be accessed by private corporations, government-owned and controlled corporations (GOCCs) and local government units (LGUs). 

The funds may be used to finance infrastructure and support systems for the Strong Republic Nautical Highway (SRNH), particularly access/toll roads, bulk grains highway, and cold chain highway. 

The Project for Flood Disaster Mitigation in Camiguin Island involves the construction of two Sabo dams in Pontod River and the reconstruction of the damaged Hubangon Bridge in Camiguin Island. It aims to mitigate damages caused by disasters such as flood and debris flow with the goal of obtaining sustainable economic growth, along with the improvement of living standards in the area.