Philippines and Japan Sign 65 Billion Peso Loan for Infra, Climate Projects

The Philippines and Japan have agreed on P65 billion in loan financing for five projects focused on enhancing infrastructure and climate change efforts in the nation.

In a meeting between the two governments yesterday in Manila, Finance Secretary Ralph Recto and Baba Takashi, the country chief representative of the Japan International Cooperation Agency, oversaw the signing of loan agreements totaling JPY 171.58 billion, or approximately P65.43 billion.

Recto and Takashi finalized the funding for the third phase of the Davao City Bypass Construction project amounting to JPY 46.34 billion (P17.67 billion). The Philippines' inaugural long-distance mountain tunnel is designed to improve connectivity and accessibility in Davao City. The development of a four-lane bypass road measuring 45.5 kilometers in length is anticipated to enhance mobility in Davao, promote trade, and boost economic growth across Mindanao.

The two administrations also signed the JPY 45.76 billion (P17.45 billion) loan for the fourth and last phase of the Pasig-Marikina River Channel Improvement project.

The initiative seeks to enhance flood management systems in Metro Manila by constructing dikes and revetments, installing flood gates, and performing channel dredging, among other measures. The fourth phase encompasses both structural and non-structural strategies designed to reduce flood damage in the capital due to channel overflow of the Pasig-Marikina River, thus promoting urban development and improving the sustainable environment along the river.

Japan is in discussions with the Philippines to assist in building the Central Mindanao High Standard Highway, the second San Juanico Bridge, the flood control and drainage system in Davao City, and the Parañaque Spillway, along with the advancement of the National Public Broadcasting Digital Terrestrial Broadcasting Network and the renovation of the Magat Dam, among other projects.