The Japan External Trade Organization (JETRO) has committed to further enhance trade and investment cooperation between Manila and Tokyo as it congratulated Philippine officials led by Finance Secretary Carlos Dominguez III for their successful economic roadshow held last September in Tokyo.
In a letter to Dominguez, JETRO executive vice president Yuri Sato cited “the success of the Philippine Economic Briefing 2017” organized on September 26 in the Japanese capital to showcase before investors the vast investment potentials under the Duterte administration’s “Build, Build, Build” infrastructure modernization program.
“With seven key Cabinet members of the Philippine government presenting their commitment to Japanese investors regarding deregulation of foreign direct investment and tax reform, the briefing received high praise from participants,” Sato said in his letter.
JETRO is a Japanese government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. It hosted a luncheon session following the briefing.
Besides Dominguez, the other high-ranking officials at the briefing were Executive Secretary Salvador Medialdea, Secretaries Ernesto Pernia of the National Economic and Development Authority (NEDA), Benjamin Diokno of the Department of Budget Management (DBM), Mark Villar of the Department of Public Works and Highways (DPWH), and Arthur Tugade of the Department of Transportation (DOTr) and Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr.
“JETRO will continue its efforts to increase cooperative activities between the Philippines and Japan. We would appreciate your continued kind support and encouragement,” Sato told Dominguez in his letter.
During the briefing in Tokyo, Dominguez had cited the “robust and mutually beneficial relationship” between Manila and Tokyo for the past six decades.
He also thanked Japan for its continued support for the Philippines’ economic development on the watch of Japanese Prime Minister Shinzo Abe, who has pledged a 1-trillion yen (9 billion USD) investment and development aid package to the country.
Dominguez said the Philippines’ planned first subway line, made feasible and possible through Japanese financing and technical support will be “a great monument to the friendship” between the two countries.
The exchange of notes between Manila and Tokyo for the JPY104.5 billion loan (about $929.1 million) for the Metro Manila Subway Project (Phase 1) of the DOTr was signed in November during the official visit of Prime Minister Abe here to take part in the 31st ASEAN Summit and Related Meetings.
As the Duterte administration pursues its ambitious program to modernize infrastructure and accelerate inclusive growth, Dominguez told potential Japanese investors at the economic briefing that the Philippine government was looking forward to increased investment flows from Japanese companies.
Besides holding the Philippine Economic Briefing in Tokyo last September, Dominguez and other members of a Cabinet-level delegation also took part in the 3rd Philippines-Japan High-Level Meeting of the Joint Committee on Infrastructure Development and Economic Cooperation.
In the meeting, Dominguez said officials of the two countries agreed to further streamline their respective approval processes and introduce new measures to put in the fast lane the implementation of big-ticket infrastructure projects presented by Manila to Tokyo for possible financing, in line with their mutually approved “Fast and Sure” principle.
Noting that both governments have successfully introduced improvements in their key processes in the past, the meeting allowed both sides to discuss additional measures to streamline processing, including by introducing innovative mechanisms and actions. The Japanese side expressed openness to explore and discuss government to government measures.
Dominguez said the shortening of the processes would depend on the “complexity of the projects,” among other factors.
He informed the Japanese officials that on the Philippines’ side, the government recently introduced the “3-in-1” process in which three necessary approvals prior to the signing of any loan agreement for projects funded by Official Development Assistance (ODA) loans will be issued simultaneously during NEDA Board meetings chaired by President Duterte.
Under the streamlined “3-in-1” process, Dominguez said the NEDA Board approval; the issuance of the Special Presidential Authority (SPA) to government officials to negotiate and sign the loan, guarantee or grant agreement for the project; and the Forward Obligational Authority for projects of national government agencies by the Department of Budget and Management (DBM) would be issued simultaneously upon the projects’ approval by the NEDA Board.
This “3-in-1” streamlined process will shorten the processing time for loan approvals “by at least two to three months,” according to Dominguez.
