THE Philippines and Japan have signed an exchange of notes for two documents in line with Japan’s commitment to provide around ¥205 billion (about P95 billion) in concessional loans for projects under the Duterte administration’s “Build, Build, Build” (BBB) infrastructure program, the Department of Finance (DOF) has reported.
The exchange of notes signed on Wednesday cover the ¥37.905-billion loan (or approximately $336.24 million) for the Pasig-Marikina River Channel Improvement Project Phase IV; and the ¥167.199 -billion loan (about $1.413 billion) for the first tranche of the North-South Commuter Railway (NSCR) Extension Project.
The signing was done by the Department of Foreign Affairs (DFA) and the Embassy of Japan after the sixth Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation meeting at the Philippine International Convention Center (PICC) in Pasay City.
Following the sixth meeting, Japanese Ambassador Koji Haneda and Foreign Affairs Secretary Teodoro L. Locsin Jr. signed and exchanged notes concerning the two yen loanprojects, amounting to a total ¥205 billion (approximately P95 billion), in the presence of Dr. Hiroto Izumi, Special Advisor to the Prime Minister, and Philippine Economic Managers.
“This is our sixth meeting since March 2017. Our regular meetings continue to visibly deliver positive impact on our key infrastructure projects and sectoral cooperation. I am glad to see this Joint Committee has covered and addressed many issues in such a short period of time,” Finance Secretary Carlos G. Dominguez III said.
During the meeting, the finance chief chaired the Philippines’s side, while the Japanese delegation was led by Izumi.
The loan for the Pasig-Marikina River Channel Improvement Project Phase IV covers the final phase of the project to mitigate the frequent massive flooding caused by the overflow of the Pasig-Marikina River.
For the NSCR Extension Project, Japan has committed to grant the loan in tranches. The project involves extending the NSCR railway from Malolos in Bulacan to Clark International Airport in Pampanga and from Solis in Manila to Los Banos, Laguna.
Dominguez said the two sides will continue to discuss Philippine flagship infrastructure projects included in the pipeline for Japanese financing “to address outstanding issues on project preparation and implementation.”
Faster processing
As a result of the regular dialogues between the Philippines and Japan, two loan agreements were signed in a short span of time since the fifth meeting of the two countries in Tokyo in June for official development assistance (ODA).
These cover the supplemental loan of ¥4.376 billion for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project and the ¥38.1-billion loan for the Metro Rail Transit Line 3 (MRT 3) Rehabilitation Project.
Joining Dominguez and Locsin at the meeting were Secretaries Ernesto M. Pernia of the National Economic and Development Authority (Neda), Benjamin E. Diokno of the Department of Budget and Management (DBM), Arthur P. Tugade of the Department of Transportation (DOTr), Mark A. Villar of the Department of Public Works and Highways (DPWH), Alfonso G. Cusi of the Department of Energy (DOE); as well as Vivencio B. Dizon, President-CEO of the Bases Conversion and Development Authority (BCDA); among others.
Dizon explained that key projects under the government’s BBB program, as well as projects funded with Japanese ODA, are well on track in terms of implementation.
“I think in terms of the key projects that have already been launched both in Metro Manila, Luzon, the Visayas, and Mindanao, I think things are on track. As for the ODA projects with Japan, everything I think, is on track,” Dizon said.
Asked on when the loan signing agreement for the two projects would take place, Dominguez said, “I’m not sure if there’s a specific date already set, but we will be working on it together with the Japanese Embassy here, as well as our Japanese counterparts.”
He said the speed in which the loan agreements signed with China as well as Japan for infrastructure projects to be implemented in the country are “progressing quite well.”
“It’s not a horse race. Basically, we are satisfied with the pace that we are achieving for both big projects; we are receiving ODA assistance from China and Japan, they are both very relevant and the projects on both sides are progressing quite well,” he added.
Best time
Now is the best time, he said, to have the Philippines’s infrastructure projects funded by ODA, wherein rates are low and the tenors for the agreements are long, since the country will become a middle income soon resulting to higher interest rates.
Meanwhile, Villar said the Bangsamoro Road Network Development Project is being eyed for implementation within the year.
“We have already completed the master plan for the Marawi road network, which is one of the projects of Jica [Japan International Cooperation Agency]. So we are targeting to start implementation this year. We will implement this program that was generously given to us by Jica in the amount of P950 million,” Villar said.
During the meeting, a joint venture agreement was signed for the New Clark City among the BCDA, Japan Overseas Infrastructure Investment Cooperation for Transport and Urban Development and Surban Jurong.
The contract for general consulting service for the Metro Manila Subway Project Phase I between the DOTr and Japanese consulting firms was also signed.
https://businessmirror.com.ph/japan-gives-%E2%82%A795-b-loan-for-flood-control-rail/
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