The Department of Finance (DOF) on Thursday said it was working toward signing this year four major loan agreements with the Japan International Cooperation Agency (JICA) to cover a portion of the costs for projects slated until next year.
The DOF said Finance Undersecretary Joven Balbosa and JICA director general for Southeast Asia and Pacific Hayakawa Yuho met last April 18 in Washington to discuss the timelines and preparations required to facilitate the signing.
The loans will cover projects on maritime safety, roads and flood risk management worth a total of $1.5 billion.
Aside from the usual portfolio of infrastructure projects funded by JICA, the DOF said the Japanese agency also has plans to expand into other sectors such as agriculture, education and health.
Another important development that the DOF cited was JICA’s expression of openness to scale up its policy-based lending.
In particular, the Finance department said JICA intended to co-finance subprogram 2 of the Climate Change Action Program (CCAP) with the Asian Development Bank (ADB) and the Agence Française de Développement (AFD).
According to the DOF, CCAP will support the Philippines in implementing its national climate policies, including its pledges under the Paris Agreement.
Meanwhile, the DOF said it asked for JICA’s assistance in bringing in more private sector financing to support the government’s development targets, including its goal of transitioning to an upper-middle income country status by 2025, in a bid to gradually shift away from concessional financing. —Alden M. Monzon