Philippines, Japan ink five loan agreements for key infra projects
The governments of the Philippines and Japan, through the Japan International Cooperation Agency (JICA), today signed loan agreements worth more than JPY 171 billion for five major development projects.
The signing ceremony took place during the 15th High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation at the Bureau of the Treasury in Intramuros, Manila. Gracing the event were high-ranking officials from both governments, led by representatives from the Philippine Department of Finance (DOF), Department of Public Works and Highways (DPWH), Department of Budget and Management (DBM), the National Economic and Development Authority (NEDA), Embassy of Japan, and JICA.
The said signing reaffirmed Japan’s commitment to supporting the Philippines’ transition to an upper-middle-income country by 2025 and advancing public-private partnerships in infrastructure development.
In a statement, JICA Philippines said the agreements will fund major infrastructure and development initiatives aimed at enhancing climate resilience, mitigating flood risks, improving transportation efficiency, and expanding healthcare access. These are seen to contribute to the attainment of key sustainable development goals (SDGs).
One of the projects covered in the loan agreements is the Davao City Bypass Construction Project (Phase III), which has been allocated JPY 46.338 billion. This project seeks to alleviate worsening traffic congestion in Davao City by constructing a 29.6-kilometer bypass road, including bridges and mountain tunnels.
Another major initiative, the Pasig-Marikina River Channel Improvement Project (Phase IV) (II), will be supported by a JPY 45.759 billion loan to address the flooding risk in Metro Manila, while the Cavite Industrial Area Flood Risk Management Project (II) will receive JPY 14.483 billion to mitigate flood risks in one of the country’s key economic hubs.
Another JPY 35 billion is earmarked for the Climate Change Action Program, Subprogram 2, which accelerates the Philippines’ efforts to implement climate change policies and sustainable financing mechanisms. Finally, a JPY 30 billion loan will be for the Build Universal Healthcare Program, Subprogram 2, which seeks to improve healthcare access and service delivery in the Philippines.
The Philippines is among the top recipients of Japan’s official development assistance (ODA) globally, underscoring the heart-to-heart ties between the two nations.
