Finance Secretary Ralph G. Recto has obtained a total of ₱65.43 billion in loans from Japan to fast-track the roll-out of infrastructure projects and provide budget support for climate change and health programs.
The loan agreements for five projects and programs to be funded by Japan’s official development assistance (ODA) were signed during a high-level meeting between officials of the Philippine and Japanese governments in Manila on Monday, March 24.
The Philippine delegation, led by Recto and co-chaired by National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, met with senior Japanese officials, including Dr. Mori Masafumi, Special Advisor to the Japan’s Prime Minister, who convened the 15th Philippines-Japan High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation.
During the meeting, Recto and Japan International Cooperation Agency’s (JICA) new Philippines Chief Representative Baba Takashi signed the following loan agreements: 46.34 billion Japanese yen (about ₱17.67 billion) for the Davao City bypass construction project, to build a 45.5-kilometer, four-lane bypass road that will improve mobility, facilitate trade, and foster economic growth in Mindanao; 45.76-billion yen (about ₱17.45-billion) financing for phase four of Pasig-Marikina River channel improvement, which will bolster flood management infrastructure in Metro Manila through the construction of dikes, revetments, flood gates, and channel dredging; and 14.48 billion yen (about ₱5.52 billion) for Cavite industrial area flood risk management, to mitigate flood risks in the lower reach of San Juan River basin and adjacent drainage areas.
Also, Recto and Takashi, on behalf of the Philippine and Japanese governments, respectively signed agreements for climate change action program’s subprogram two, where the Philippines secured 35 billion yen (about ₱13.35 billion) to enhance climate adaptation, mitigation, and disaster preparedness initiatives; and 30-billion yen (about ₱11.44-billion) build universal health care (UHC) subprogram two, which will improve equitable access to quality health services, especially addressing gender-specific health concerns and the health impacts of climate change.
“We are deeply grateful to the government of Japan for its confidence in our ability to turn these projects into realities. On the part of the Philippine government, we will honor this trust by ensuring that every peso, every yen, and every commitment made today translates into real improvements to the people we serve,” said Recto.
Japan’s government also reaffirmed its commitment to supporting the Marcos administration’s Build Better More program and its priority projects, such as phase one of the delayed Metro Manila subway, North-South commuter railway (NSCR) projects, Metro Rail Transit Line 3 (MRT-3) rehabilitation, Dalton Pass east alignment road, and Metro Manila priority bridges seismic improvement project.
The Philippines and Japan also discussed potential new collaborations, including projects like Central Mindanao high standard highway, second San Juanico Bridge, flood control and drainage project in Davao City, Parañaque spillway, and Magat Dam reconstruction.
Updates on the Mindanao peace process and sectoral cooperation in disaster risk reduction, maritime safety, information and communications technology (ICT), and energy transition were also part of the agenda.
As the Philippines aims for upper middle-income status, discussions focused on the integration of public-private partnerships (PPP) and ODA financing in future infrastructure development.
“Indeed, Japan is not just a friend in words but in action. And today is just one of the many proofs that our friendship is growing stronger each day through concrete efforts,” Recto said.
The Philippine delegation included key economic officials, including Budget and Management Secretary Amenah F. Pangandaman, Transportation Secretary Vivencio B. Dizon, Public Works and Highways Secretary Manuel M. Bonoan, Energy Secretary Raphael Perpetuo M. Lotilla, and Ambassador to Japan Mylene J. Garcia-Albano.