The Department of Finance (DOF) assured that the Japan-backed infrastructure projects left behind by the Duterte administration will proceed as planned. ,
The DOF assurance comes after President Marcos' economic managers met with their Japanese counterparts at the13th Philippines-Japan High-Level Meeting of the Joint Committee on Infrastructure Development and Economic Cooperation last Friday, Nov. 4, where both parties discussed progress of key infrastructure projects.
“The Philippines and Japan have built strong economic, political, and cultural ties that span generations,” said Finance Secretary Benjamin E. Diokno, who chaired the high-level meeting.
“We are grateful for the unrelenting support of the Japanese government to the Philippines’ development agenda over the years,” he added.
In response, Special Advisor to the Prime Minister of Japan Dr. Mori Masafumi said that the Japanese government remains committed to development cooperation with the Philippines.
“Let me emphasize that this administration’s commitment to the Philippines remains unchanged under the Marcos presidency,” Masafumi said in his welcome remarks.
Japan is the Philippines’ number one official development assistance (ODA) partner, whose support has contributed to projects in infrastructure development, investment readiness, disaster risk mitigation and management, food security, education, health, among others.
Since 2017, the governments of Japan and the Philippines have cooperated on the implementation of major infrastructure projects such as the North-South Commuter Railway Projects and the Metro Manila Subway Project Phase I.
The Japanese government has followed through on the completion and inauguration of 10 loan-assisted projects from the previous administration amounting to P93.071 billion, or $1.58 billion.
In his presentation, Diokno briefed the Japanese government delegation on the Philippines’ Medium-Term Fiscal Framework, which outlines the government’s plan to reduce the fiscal deficit, promote fiscal sustainability, and enable robust economic growth.
He shared that the Philippines will focus on high public infrastructure spending to stimulate growth, maintaining expenditure at five percent to six percent of gross domestic product (GDP) annually.
Socioeconomic Planning Undersecretary Joseph Capuno added that to meet the infrastructure spending requirements, the Marcos administration aims to carry out a more holistic approach by encouraging more solicited Public-Private Partnership infrastructure projects.
Representatives from Philippine government agencies also presented updates on proposed key infrastructure development projects.
Meanwhile, Diokno firmly stated that a clear process in both the provision and acceptance of grants for Japan-supported projects should be strictly held in place.
Masafumi said the high-level meeting has been insightful in determining the assistance needs of the Philippines in its pursuit of upper middle-income status.
“I am pleased to see that the long-standing partnership between the Philippines and Japan has remained strong throughout transitions in the leadership of both of our countries,” said Diokno.
Specific priority areas of cooperation and pipeline projects shall be identified and mutually agreed upon in the next bilateral meeting, which will be hosted by the Government of Japan in Tokyo at a later date.