CLARK FREEPORT – The Philippines has signed a $202.04 million (Y21.9 billion) loan agreement with Japan for road network development projects in conflict-affected areas in Mindanao.
The agreement was signed at the 8th High Level Meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation held here last Tuesday
“This involves the construction, rehabilitation, and improvement of 176.6 km of roads linking the Bangsamoro Autonomous Region in Muslim Mindanao to the trade centers of Mindanao,” Finance Sec. Carlos Dominguez III told reporters.
Dominguez said “our discussions covered broad areas of Philippines- Japan sectoral cooperation including regional development, information and communications technology, energy, environment, public safety, disaster prevention, and peace building initiatives in Mindanao. Both sides also discussed the strategy for future cooperation and considering the Philippines will soon graduate to upper middle-income country status by end of this year or in 2020.”
He said the Philippines and the Japanese delegations agreed on five points during the meeting.
First, he said, was “to maintain close coordination to resolve pending issues and revisit certain procedures in order to deliver fast and sure action towards achieving timelines.”
“Second, we will work towards signing a supplemental loan for the ongoing Davao City Bypass Construction Project within this year and three more loan accords for the New Mactan Bridge Construction Project in Cebu, the second phase of the Metro Manila Priority Bridges Seismic Improvement Project, and second tranche for the first phase of the Metro Manila Subway Project,” he said.
Dominguez said that third, “both countries will review the progress of the Philippine Railway projects that will be rolled out in cooperation with Japan and committed to continue consultation to accelerate implementation and to address all the challenges.”
“Fourth, the Japan International Cooperation Agency will conduct feasibility studies for the Dalton Pass East Alignment Alternative Road Project and Circumferential Road 3 Missing Link Project later this year,” he said.
Dominguez said that lastly, “Japan affirmed its commitment to provide additional assistance for the rehabilitation and reconstruction of the most affected area in Marawi City.”
Dominguez and Economic and Planning Secretary Ernesto Pernia chaired the Philippine delegation while Dr. Hiroto Izumi, special adviser to Prime Minister Shinzo Abe, led the Japanese delegation during the meeting.
Pernia said that NEDA has been “prioritizing more costly infrastructure projects under the Build-Build-Build program to level up the country’s economic status.”
“Big infrastructure projects such as Metro Manila Subway and North-South Commuter Railway aim to make the Philippines reach the upper middle-income status by the end of 2019 or in 2020,” he said.
He noted that “should the Philippines achieve the target of increasing its present economic status by the end of the year or in 2020, it will no longer be qualified for the Japanese Special Terms for Economic Partnership funding.”
Pernia said that at present, there are 12 NEDA board-confirmed projects amounting to P1.6 trillion by the Japanese Government through the Japan International Cooperation Agency.
