Three more loan agreements with Japan are expected to be formalized in the first quarter of 2019 involving the implementation of three “Build, Build, Build” infrastructure projects designed to strengthen the transport network of the National Capital Region (NCR), mitigate flood risks in Metro Manila and improve accessibility and linkages in Mindanao’s conflict-affected areas, the Department of Finance (DOF) said.
The DOF’s International Finance Group (IFG) said that the total loans to be extended by the Japan International Cooperation Agency (JICA) for these three projects—the North South Commuter Railway (NSCR) Extension Project, the fourth phase of the Pasig-Marikina River Channel Improvement Project, and the Road Network Development Project in Conflict-Affected Areas in Mindanao are estimated at P108.5 billion.
In its report to Finance Secretary Carlos Dominguez III during a recent DOF Executive Committee (Execom) meeting, the IFG said that the signing of the loan agreement for the NSCR Extension Project is scheduled this month. The loan accord for the Pasig-Marikina flood control project, on the other hand, is still under legal review, while the Road Network Development project for Mindanao is set for approval by the board of the National Economic and Development Authority (NEDA).
Last Nov. 21 in Manila, Philippine and Japanese officials convened for the sixth time the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation.
During the meeting, the two sides continued to discuss the various Philippine flagship infrastructure projects included in the pipeline for Japanese financing to address outstanding issues on project preparation and implementation and how these are to be carried out under the “fast and sure” approach.
As a result of the regular dialogues between the two countries and the “fast and sure” approach, Dominguez said two loan agreements were signed in a short span of time since the fifth meeting of the Joint Committee was held in Tokyo last June 2018.
These cover the supplemental loan of JPY4.376 billion for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project and the JPY38.1 billion loan for the Metro Rail Transit Line 3 (MRT3) Rehabilitation Project, which, Dominguez noted, underwent loan processing in less than three months.
Aside from the second phase of the Bohol Airport project, and the MRT-3 Rehabilitation, the Philippines and Japan have so far signed loan agreements on the following projects on the Duterte watch: The second phase of the Maritime Safety Capability Improvement Project for the Philippine Coast Guard, Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST); Cavite Industrial Area Flood Risk Management Project; first tranche of the loan for the first phase of the Metro Manila Subway Project; and the third phase of the Arterial Road Bypass Project in Bulacan.
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