Ambassador Kazuya Endo of Japan and Foreign Affairs Secretary Enrique Manalo on Friday signed and exchanged notes on two program loans and three supplemental loans worth 171.58 billion yen (about ₱66 billion), for the development of critical infrastructure, climate change initiatives, and health programs in the Philippines.
According to a news release from the Embassy of Japan in the Philippines, the loans will fund the following key projects:
1. Climate Change Action Program (CCAP) – 35,000 million yen, 1.5% per annum, 15 years (including a 5-year grace period). This program will help the Philippines achieve its climate goals, including the Nationally Determined Contribution (NDC), and enhance climate resilience and the transition to a low-carbon economy.
2. Build Universal Health Care Program – 30,000 million yen, 1.5% per annum, 15 years (including a 5-year grace period). The loan will support the Philippines’ efforts to achieve Universal Health Coverage (UHC), strengthening health financing, service delivery, and information management systems.
3. Davao City Bypass Construction Project (III) – 46,338 million yen, 0.65% per annum (0.55% for consulting services), 40 years (including a 10-year grace period). The supplemental loan will fund the construction of a 30-kilometer bypass road, including 2.3 kilometers of underground twin-tube tunnels, the longest in the Philippines. The project will ease traffic congestion in Mindanao’s largest economic hub.
4. Pasig-Marikina River Channel Improvement Project (Phase IV) (II) – 45,759 million yen, 0.65% per annum (0.55% for consulting services), 40 years (including a 10-year grace period). This additional funding will complete flood mitigation structures in Metro Manila, providing better flood protection for the area.
5. Cavite Industrial Area Flood Risk Management Project (II) – 14,483 million yen, 2.25% per annum (0.55% for consulting services), 30 years (including a 10-year grace period). The loan will extend drainage and widen diversion channels, benefiting over 8,000 households and manufacturing plants in Cavite.
Japan continues to be the Philippines’ top Official Development Assistance (ODA) donor, providing essential aid across sectors such as security, transportation, health, and environmental protection. These loans reflect the continued strong partnership between the two nations, addressing the country’s key challenges and promoting long-term solutions.
