The Japan International Cooperation Agency (JICA) approved the fourth and final tranche of its standby loan, which will be used in the Philippines’ post-pandemic recovery programs, the Department of Finance (DOF) announced.
In a statement, Finance Secretary Carlos G. Dominguez III said the government received another 10-billion Japanese yen, equivalent to about P4.6 billion, as part of the 50-billion Japanese yen Post Disaster Stand-by Loan Phase 2 (PDSL 2).
“The disbursement was made in view of the recent declaration of an Enhanced Community Quarantine (ECQ) in the NCR [national capital region] in August to curb the spread of the highly transmissible COVID-19 Delta variant,” Dominguez said.
Proceeds of the JICA loan, Dominguez said “shall be used to support government efforts in providing emergency cash grants to vulnerable sectors” in Metro Manila.
Inked by the Philippines and Japan in September last year, PDSL-2 is a quick disbursement facility that allows Japanese funding support in multiple tranches for post-disaster response efforts in the event of a national calamity or health emergency.
The first tranche amounting to 10 billion Japanese yen was disbursed in October 2020, while the second tranche was in January 2021 costing 10 billion Japanese yen.
Another 20 billion Japanese yen was disbursed last June, the third tranche of the PDSL 2.
“The JPY10 billion disbursement will also help the government implement ‘other mechanisms’ necessary to properly implement COVID-19 response and recovery interventions in the country,” Dominguez said.
The PDSL 2 was extended by Japan in recognition of the Philippines’ plans and accomplishments in the following reform areas: policy and institutional framework for disaster risk reduction and management; financial resilience to natural disasters and climate change; and public health emergency preparedness.