P2-B Japan loan for bridge project OKd
The Philippines has secured from Japan a 4.409-billion Japanese yen (more than P2 billion) loan to rehabilitate Guadalupe and Lambingan bridges crossing the Pasig River so they can withstand strong earthquakes.
The Japanese government’s aid arm, Japan International Cooperation Agency (Jica), said it had signed with the Philippine government last March 30 the loan agreement to partly finance the P7.8-billion Metro Manila Priority Bridges Seismic Improvement Project 2.
“The objective of the project is to strengthen the resilience of the transport network in Metro Manila by replacing and strengthening the Guadalupe and Lambingan bridges utilizing improved bridge seismic design specifications. This will contribute to a more secure and sustainable economic and social development of Metro Manila and to realizing speedy recovery in case of large-scale earthquakes in the National Capital Region,” Jica said.
Jica added that “the special terms for economic partnership (Step) will apply to the Japanese ODA (official development assistance) loan for the project, and it is expected that advanced Japanese technology, such as super-structure erection method and steel pipe sheet pile, will be utilized in the project.”
“Step refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan-tied and subcontracting is general untied. Although the main contract allows a joint venture with the borrowing country in addition to the Japanese company and its subsidiary with an overseas presence, the Japanese company must be the leading partner in such an arrangement,” Jica explained.
This project to be implemented by the Department of Public Works and Highways was expected to be completed in August 2022, “when the operation of all lanes on the two bridges has resumed and all facilities are put into service,” Jica said.
The bridges will have “design standards that can withstand an earthquake on a scale that occurs once in 1,000 years,” Jica added.
The Jica loan will be slapped an annual interest rate of 0.1 percent for the project, and 0.01 percent for consulting services. It will have a repayment period of 40 years, on top of a 12-year grace period.
In a separate report, Jica noted that “several large-scale bridges on arterial roads in major urban areas do not meet the seismic performance requirements for the assumed large-scale earthquake and are thus highly likely to be destroyed” in the Philippines, including the two bridges covered by this project.
“More than 50 years have passed since the construction of most of the bridges located on arterial roads in Metro Manila where about 40 percent of the country’s GDP (gross domestic product) is concentrated. So disaster mitigation measures, including improvement of earthquake resistance has become an urgent issue to be addressed,” Jica added. INQ
