The Philippines will acquire five multi-role response vessels to enhance the Philippine Coast Guard (PCG) maritime operations through a loan grant from Japan.
Foreign Affairs Secretary Enrique Manalo and Japanese Ambassador to the Philippines Endo Kazuya on Friday, May 17, led the signing and exchange of diplomatic notes between the two countries for Japan’s Official Development Assistance (ODA)’s of PCG’s Maritime Safety Capability Improvement Project (MSCIP) Phase III.
The project will involve the acquisition of five additional units of 97-meter offshore patrol capable Multi-Role Response Vessels (MRRV) that are coupled with the development of the required support facilities for the PCG, according to the Department of Foreign Affairs (DFA).
The project is worth P23.85 billion or 64.38 billion Japanese Yen.
The new vessels, according to DFA, will support the PCG in improving its capabilities for maritime operations, particularly in addressing transnational crimes.
The terms and conditions of the loan, according to the Japanese Embassy in Manila are the following:
- Maximum Loan Amount: 64.3 billion yen
- Interest rate: 0.3 percent per annum (0.2 percent per annum for consulting services), and
- Repayment period: 40 years (including a 10-year grace period)
“This occasion signifies not only the deepening of bilateral relations between the Philippines and Japan but also underscores our unwavering commitment to enhance our maritime safety capabilities for the benefit of our nation and the broader maritime community,” Manalo said in his remark.
Officials from the Department of Finance, the Department of Transportation, the Philippine Coast Guard and the Japan International Cooperation Agency witnessed the ceremony.
Japan is the Philippines’ top bilateral ODA partner, with its long history of support for Philippine development priorities spanning infrastructure, health, human resources, agriculture, education, humanitarian assistance and disaster relief, among many others, DFA said.
The signing of the project is “another milestone” for the Philippines-Japan relations, according to Endo.
In 2013, the two sides signed the first phase of the project for the provision of ten 44m class MRRVs, and in 2016, the second phase was signed for the provision of two 97m class MRRVs.
“Providing five new Multi-Role Response vessels will greatly enhance the Philippine Coast Guard's ability to perform critical maritime operations, ensuring safe & free seas for all,” he said.