10 October 2012, Tokyo, Japan. The Government of the Republic of the Philippines and the Government of Japan signed today the JPY7.775 billion (about US$100 million) Loan Agreement to support the implementation of the Development Policy Support Program-Investment Climate Program Loan at the sidelines of the World Bank-International Monetary Fund Annual Meeting in Tokyo, Japan.
Finance Secretary Cesar V. Purisima signed the Loan Agreement with Japan International Cooperation Agency (JICA) President Akihiro Tanaka in the presence of Undersecretary Rosalia V. De Leon, JICA Vice President Hiroshi Arakawa, and Director General Koki Hirota.
Consistent with the Philippine Development Plan (PDP) for 2011-2016, DPSP-IC aims to strengthen domestic policy to promote competitiveness and inclusive growth in three (3) policy areas: employment facilitation, improving competitiveness and creating of an enabling environment for PPP infrastructure.
The Program loan, co-financed with the Asian Development Bank, is a budgetary support financing which supports the achievements of the Philippine Government covering implementation of policy reforms for the improvement of the countryâ€™s investment climate. The loan carries with it an interest rate of 1.4% per annum, with 30 years inclusive of 10 years grace period.
The total amount of budgetary support funds when combined with the Asian Development Bankâ€™s $350 million program loan totals about $450 million.
As of date, Japan continues to be the Philippines’ top source of official development assistance (ODA).Â JICA presently supports the loan and grant aid financing totaling to about JPY250 billion primarily in the sectors of agriculture and agrarian reform, infrastructure, flood control, environment, climate change, Mindanao peace process, disaster risk reduction and management, and human resource development.