Philippines, Japan to finalize two infrastructure loan agreements

MANILA, Philippines — Manila and Tokyo are expected to finalize soon two loan agreements for the implementation of infrastructure projects in Metro Manila and Davao City, the Department of Finance (DOF) said.

During a meeting in Hakone, Japan Friday, Finance Secretary Carlos Dominguez informed Japanese officials that both the Philippines and Japan are ready to sign the 4.409 billion yen supplemental loan agreement for the Metro Manila Priority Seismic Bridge Improvement Project in the coming months.

According to the Japan International Cooperation Agency (JICA), the project seeks to strengthen the resilience of the transport network in Metro Manila by replacing two bridges, namely the Lambingan Bridge and the Guadalupe Bridge.

Manila and Tokyo also agreed to work towards the signing of the supplemental loan agreement to finance the ongoing Davao City bypass construction project.

A Philippine delegation, led by Dominguez, visited Japan last week for the ninth high-level meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation.

The meeting was focused on the financing arrangements that Japan is considering to grant to the Philippines, which is currently transitioning to become an upper-middle income country by 2020.

During the discussions, the DOF said the Japanese side reiterated its intention to provide funding support to the Cebu-Mactan bridge and the Coastal Road Construction Project.

Tokyo also asked for updates on the feasibility study of the Dalton Pass Easy Alignment Road Project, which is being financed by JICA.

The Japanese government also expressed interest to conduct pre-feasibility studies for four projects, according to the DOF.

These include the Cebu Circumferential Road, Second San Juanico Bridge and Access Road, Central Mindanao Highway (Cagayan de Oro-Malaybalay Section), and the Agusan del Norte-Butuan City Logistical Highway.

Both parties also agreed to speed up the formulation of the Central Mindanao Highway Project (Cagayan de Oro-Malaybalay Section), which could be a candidate for Japanese official development assistance.

“Japan reaffirmed its readiness to enhance its assistance to the Philippines for the development of Mindanao, and provide additional technical aid to the Bangsamoro Transition Authority (BTA) and the rehabilitation and reconstruction of the Most Affected Areas in Marawi City,” the DOF said.

Japan and the Philippines also discussed other areas of cooperation, such as disaster risk management.

The two sides welcomed the progress of the railway projects financed by Japan, such as the Metro Manila Subway Project, and the North-South Commuter Railway Project.

At the conclusion of the meeting, Dominguez and Hiroto Izumi, special advisor to Japan Prime Minister Shinzo Abe, signed a memorandum of cooperation, which signifies Japan’s commitment to provide technical support for the formulation of a regional development master plan for Subic Bay and its surrounding areas.