Japan approves P1.44 billion loans for 4 infrastructure projects

MANILA, Philippines — Japan has approved the provision of Y3.1 billion in technical assistance to the Philippines to support the implementation of four infrastructure projects, according to the Department of Finance (DOF).

Equivalent to approximately P1.44 billion, the DOF said Japan’s technical assistance covers the Cebu-Mactan Bridge and Coastal Road Construction Project, the master plan for Subic Bay, the Parañaque Spillway, and the Cagayan de Oro-Malaybay Section of the Central Mindanao Highway project.

The DOF said the Japanese government also committed to continuously provide technical assistance and grants to the Philippines with highly concessional payment terms, possibly under its Special Terms of Economic Partnership (STEP), before the Philippines becomes an upper-middle income country on or before 2022.

Both the Philippines and Japan are also targeting to finalize the agreement on the second tranche loan for the Metro Manila Subway Project (Phase 1) in the first quarter of 2021, the DOF said.

Members of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation held a virtual meeting on Oct. 28 to discuss the progress of Japan-funded infrastructure projects under the  Build Build Build program.

During the meeting, Hiroto Izumi, the special advisor to the Japanese Prime Minister, said Tokyo remains firm on its commitment to enhance bilateral ties with the country under the leadership of new Japanese Prime Minister Yoshihide Suga.

Izumi assured Philippine officials that Japan’s pledge to extend assistance to the Duterte administration’s infrastructure drive and the Mindanao peace process “remains unchanged.”

He said Japan would also continue supporting the Philippines’ efforts in fighting the COVID-19 pandemic.

Finance Secretary Carlos Dominguez, who led the Philippine panel during the meeting, said the two sides also discussed programs to accelerate Mindanao’s economic development and peace-building initiatives.

He said the Japanese side reaffirmed its commitment to enhance its assistance to Mindanao, including the new Bangsamoro Autonomous Region and the rehabilitation of Marawi city, upon the Philippines’ request.

In addition, the DOF said Manila and Tokyo also discussed the impact of the coronavirus pandemic on ongoing and pipeline infrastructure projects, particularly on the safety of the workers and immigration concerns.

They also considered the indicative increase in the total project costs, as well as the pandemic’s effect on the original timeline of the projects.

The DOF said the Philippines would continue its consultations with the affected stakeholders and formulate a framework to address these concerns.

“Our commitment to this long-standing partnership has proved beneficial amidst these trying times. Our cooperation in accelerating infrastructure development will be most critical in the country’s recovery from the adverse effects of the COVID-19 pandemic,” Dominguez said.