Friday, November 23, 2018

Amid hype on Xi visit, PH, Japan execs sign railway deals, grant

Amid ceremonies marking Chinese President Xi Jinping’s visit to Manila, the Philippine and Japanese governments quietly finalized details for another train line—the 109-kilometer North-South Commuter Railway (NSCR) Extension project.

On Wednesday, Foreign Secretary Teodoro Locsin Jr. and Japanese Ambassador to the Philippines Koji Haneda signed an exchange of notes for a P77.4-billion grant to start construction of one of the flagship projects under President Duterte’s “Build Build Build” program.

The loan represented the first tranche of official development assistance (ODA) for the entire P777-billion NSCR system.

It was to be jointly funded by Japan International Cooperation Agency and Asian Development Bank.

Improved transport

The two-part extension (Clark and Los Banos) will extend NSCR Phase 1 (Tutuban to Malolos) by 53 km north and 56 km south.

It was approved by the National Economic and Development Authority on Nov. 15 and was expected to improve mass transport in Metro Manila.

Once completed, the NSCR project will have 36 stations, 58 eight-car trains and a double-track fully elevated railway system that will connect Central Luzon, Metro Manila and Calabarzon (Cavite, Laguna, Batangas, Rizal, Quezon).

It’s also expected to have seamless transfers to existing railways in Metro Manila—Light Rail Transit (LRT) lines 1 and 2, the Metro Rail Transit (MRT) 3 and the upcoming Metro Manila subway.

The system was expected to serve 340,000 passengers a day once portions of it start operating in 2022. It’s expected to be fully operational by 2023.

MRT 3 rehab

The signing of the exchange of notes on the railway project also came two weeks after both countries inked an P18-billion loan agreement for the 43-month rehabilitation of the MRT 3.

Finance Secretary Carlos G. Dominguez III said the Philippines was “satisfied” with the pace of negotiations for financing from Japan and China for “big ticket projects.”

Dominguez said ODA assistance from Japan and China were “both very relevant and progressing on both sides quite well.”

The finance chief made the statement after meeting with a Japanese delegation led by Hiroto Izumi, special adviser to Japanese Prime Minister Shinzo Abe.

Last Tuesday, the Philippine and Chinese governments also signed a number of agreements covering economic cooperation as well as infrastructure development.

Competing

Asked if Japan and China were competing to finance projects here, Dominguez replied: “I don’t know if they are competing, but I think that many countries around the world are paying attention to the Philippines primarily because President Duterte has refocused our entire foreign policy.”

“He has focused on our neighbors,” Dominguez said.

“Please don’t forget that aside from China and Japan, South Korea is providing a significant amount of assistance to us,” he said. “In fact, the commitment is about $1 billion,” Dominguez added.

Japan and China had earlier committed $9 billion in assistance to the Philippines, including loans and grants for the Build, Build, Build program.

Through Build, Build, Build the government planned to roll out 75 “game-changing” projects, with about half to be finished within Mr. Duterte’s term.

The government planned to spend more than P8 trillion for the projects until 2022 to usher in a “golden age of infrastructure.”

https://globalnation.inquirer.net/171595/amid-hype-on-xi-visit-ph-japan-execs-sign-railway-deals-grant

Philippines, Japan line up more projects for funding

MORE INFRASTRUCTURE projects funded by Japan advanced further in the pipeline after top economic officials from the Philippines and Japan exchanged notes during their meeting late Wednesday, while also identifying new prospects.

Philippine and Japanese officials held the 6th meeting of the Philippines-Japan High-Level Joint Committee on Infrastructure Development and Economic Cooperation in Manila on Wednesday evening where both sides signed and exchanged notes for a ¥37.905-billion, or $336.24 million, loan for the Pasig-Marikina River Channel Improvement Project Phase IV and another ¥167.199 billion, or $1.413 billion, for the first tranche of the North-South Commuter Railway (NSCR) Extension Project.

The Pasig-Marikina River Channel Improvement Project involves upgrading works along the stretch of the Upper Marikina River — from downstream of the Manggahan Floodway to the Marikina Bridge — as well as construction of the Marikina Control Gate Structure.

The 109-kilometer NSCR Extension Project, meanwhile, will extend the Malolos, Bulacan-Tutuban, Manila railway to Clark International Airport in the north and to Los Banos, Laguna in the south. The system will have 58 eight-car trains, seven of which will be airport express trains, and a double-tracked elevated railway that will connect with other lines in Metro Manila.

The exchange of notes is done before the signing of loan agreements.

Manila and Tokyo also signed and exchanged bilateral documents for a Contract of General Consulting Service for the Metro Manila Subway Project Phase I between the Department of Transportation (DoTr) and a consortium of six Japanese firms and OC Global; and the joint venture agreement among the Bases Conversion and Development Authority (BCDA), Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN), and Surbana Jurong for the New Clark City.

Both sides committed to open the first three stations of the Metro Manila Subway by May 2022, inclusion of the Ninoy Aquino International Airport line extension in the detailed engineering design of the project and establishment of the Philippine Railway Institute by 2021.

Finance Secretary Carlos G. Dominguez III said in a briefing after the meeting that technical working groups will meet regularly to “address challenges for the railway projects.”

“The Japanese side requested the Philippine government to expedite measures such as land acquisition and relocation of utilities.”

Both sides also discussed the possibility of more Japanese ODA financing for “road construction and expansion projects in northern Luzon and Metro Manila, flood management and drainage improvements, and various components of the New Clark City project.”

Loan agreements signed by Japan and the Philippines since the committee met in March last year include: P11 billion for the Mega Manila Subway; P18.76 billion for the Metro Rail Transit-Line 3 (MRT-3) Rehabilitation program, P2.10 billion for the New Bohol Airport Construction and Sustainable Environmental Protection Project Phase 2, and the P4 billion for the Arterial Road Bypass Phase 3 project.

“The Philippines is already at the verge of graduating to the level where we will not qualify anymore for ODA for some countries. Our income per capita is rising, so while we are still here, I think it is best for us to take advantage of the long tenors and the relatively low interest rates because after a few years we will no longer be qualified for that. We will be considered a middle-income country, therefore, we will have to pay higher interest rates. So it makes sense for as to have these projects funded now rather than later,” Mr. Dominguez said.

Aside from Japan, the Philippines has attracted financing support from China, South Korea, Australia, New Zealand, Spain, the United States, the European Union and Canada. — Elijah Joseph C. Tubayan

https://www.bworldonline.com/philippines-japan-line-up-more-projects-for-funding/

PH, Japan sign P95-B loan on railways, river projects

The Philippines and Japan have signed a 205 billion yen (approximately P95 billion) loan involving railways and river projects aimed at promoting sustainable economic growth, overcoming vulnerability to various risks, as well as stabilizing and fortifying bases for human life and production in the country.

Following the Sixth Meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation in Manila the other day, Foreign Affairs Secretary Teodoro Locsin, Jr. and Japanese Ambassador Koji Haneda signed and exchanged notes on the latest multi-billion yen loan projects.

Dr. Hiroto Izumi, Special Advisor to Prime Minister Shinzo Abe, and Philippine economic managers witnessed the signing of the agreement.

The first project involves the North-South Commuter Railway Extension Project (I) that will run along the length of the railway from Tutuban to Calamba in Laguna (South Section), and from Malolos to Clark International Airport in Pampanga. This consists of a total extension of 109 kilometers.

The extension is expected to improve the connectivity between Manila and the surrounding areas, ease the heavy traffic congestion, and promote the convenience of the general public through fast, safe, and comfortable public transportation system.

Japan, together with the Asian Development Bank (ADB), will extend financing assistance and utilize Japan’s extensive railway knowledge, experience, and technology.  The loan for this project will provide up to 167 billion yen (approx. P78 billion).

On the Pasig-Marikina River Channel Improvement Project (Phase IV), the project will utilize Japan’s disaster prevention technology and will include major works such as dredging and construction of dikes, control gate structure, and revetment along the Pasig-Marikina river walls.

This specific project aims to mitigate flood damage in lowland areas of Metro Manila, combined with its Phase I (development of detailed design), and Phases II and III, which implemented river improvement works,

Total loan provision for the river improvement project will reach up to 38 billion yen (P18 billion pesos).

https://news.mb.com.ph/2018/11/22/ph-japan-sign-p95-b-loan-on-railways-river-projects/

PH, Japan sign Exchange of Notes for North-South Commuter Railway

The Philippines and Japan the other day (November 21, 2018) signed the Exchange of Notes for the 109-kilometer, North-South Commuter Railway (NSCR) Extension, which is part of the P777.55- billion, 147-km. NSCR System Project.

Earlier this month, the National Economic and Development Authority (NEDA) board approved the NSCR Extension.

Previously divided into three different projects, the NSCR System will seamlessly integrate the 38-km. PNR Clark 1 from Tutuban to Malolos, the 53-km. PNR Clark 2 from Malolos to Clark International Airport, and the 56-km. PNR Calamba from Solis to Calamba.

The NSCR System consists of 36 stations, 58 8-car trains – inclusive of 7 Airport Express trains, and a double-track fully elevated railway system that will connect Region III (Central Luzon), the National Capital Region (NCR), and Region IV-A (CALABARZON).

It will have seamless transfer stations with LRT-1, LRT-2, and MRT-3, as well as with the upcoming Metro Manila Subway.

When the system partially opens in 2022, it is expected to have a ridership of 340,000 passengers per day, increasing to 550,000 passengers per day when it becomes fully operational in 2023.
The Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB) are co-financing the NSCR Extension Project.

It will be ADB’s its largest loan to a single project, almost double its current largest project loan.

Foreign Affairs Secretary Teodoro Locsin Jr. and H.E. Ambassador of Japan to the Philippines Koji Haneda signed the Exchange of Notes for the extension project during the 6th Meeting of the Philippines-Japan High Level Joint Committee on Infrastructure Development and Economic Cooperation.

The signing was witnessed by several Cabinet Secretaries for the Philippines side, and by Dr. Hiroto Izumi, Special Adviser to Japanese Prime Minister Shinzo Abe, and Mr. Shigeru Kiyama, Special Adviser to the Cabinet of Japan, for the Japan side.

https://business.mb.com.ph/2018/11/22/ph-japan-sign-exchange-of-notes-for-north-south-commuter-railway/

Japan pledges funding for PH projects

Japan has committed to fund two infrastructure projects in Manila costing 205 billion yen following a high-level meeting on Wednesday.

The pledge was expressed through an exchange of notes between the Department of Foreign Affairs and the Embassy of Japan after the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation meeting.

One of the documents covers a 37.905-billion yen (about $336.24 million) loan for the Pasig-Marikina River Channel Improvement Project Phase IV to mitigate frequent massive flooding.

Another exchange of notes is for a 167.199-billion (about $1.413 billion) loan for the first tranche for the North-South Commuter Railway (NSCR) Extension Project that involves extending the railway from Malolos in Bulacan to Clark International Airport in Pampanga and from Solis in Manila to Calamba in Laguna.

Other documents signed after the meeting were the Contract of General Consulting Service for the Metro Manila Subway Project (Phase I) between the Transportation department and Japanese consulting firms and the Joint Venture Agreement between the Bases Conversion and Development Authority, Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development, and Surbana Jurong for the New Clark City project.

“In this latest meeting, both sides confirmed the updated candidate list of projects for consideration and action. This list includes new projects proposed for Japanese loan and grant financing,” Finance Secretary Carlos Dominguez 3rd said in a press conference after the signing.

Dominguez also reported that road construction and expansion projects in northern Luzon and Metro Manila, flood management and drainage improvements, and various components for the development of New Clark City were among the projects discussed for possible financing.

Both sides also reaffirmed their commitment to ensure the start of partial operations of the first phase of the Metro Manila Subway Project by May 2022, he added.

A consortium of Japanese firms has bagged an P11-billion contract to build the subway, Budget Secretary Benjamin Diokno earlier said on Wednesday.

https://www.manilatimes.net/japan-pledges-funding-for-ph-projects/472007/

Japan gives P95-billion loan for flood control, rail

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/