June 16, 2020
His Excellency Koji Haneda, Ambassador of Japan to the Philippines; Public Works and Highways Secretary Mark Villar; JICA Chief Representative Eigo Azukizawa; Finance Undersecretary Mark Joven; Public Works and Highways Undersecretary Emil Sadain; DOF Assistant Secretary Didith Tan, thank you.
The COVID-19 pandemic that hit the world will force nearly all economies into a downturn this year. With the adept response and hard work, we could limit the damage and bring our economies back to track on the path of inclusive growth.
In the case of the Philippines, our recovery strategy relies heavily on rapidly restarting the Build, Build, Build program. With their high multiplier effect and job-generating potential, investments in infrastructure will be the engine for rapid recovery in the near term.
We are happy, therefore, that two major projects facilitated by the the Japanese people through the Japan International Cooperation Agency that were accelerated through high-level consultations, will now be ready to break ground. These are crucial components of the Build, Build, Build program that will help our economy bounce back from the adverse effects of this crisis.
The 3.3-kilometer Cebu-Mactan Fourth Bridge, together with a 4.9-kilometer four-lane Coastal Road construction project, is so far the biggest infrastructure project in the Visayas under the Build, Build, Build program. With a total cost of 76.4 billion pesos or about 169 billion Japanese yen, it will create jobs in the Queen City of the South and dramatically improve movement of goods and people.
Through this project, the travel time from Mactan-Cebu International Airport to the Cebu Port Area will be reduced to 27 minutes from the current 44 minutes.
More than seventy-five percent of the total financing for this project, or around 57 billion pesos or 119 billion Japanese yen, will be financed by JICA. The remaining amount will be funded domestically.
The conduct of the detailed engineering design for this project will also be generously financed by JICA through a grant. This project will break ground in 2021 and is expected to be completed in 2029.
Meanwhile, the second phase of the Davao City Bypass Construction project will also be financed by a supplemental loan from JICA worth 18.5 billion pesos or around 35 billion Japanese yen.
This project involves the construction of a 45.5 kilometer four-lane bypass road that will begin at Barangay Sirawan in Toril, Davao City to Barangay J.P. Laurel in Panabo City. The usual travel time between the said points of 1 hour and 44 minutes via Maharlika Highway will now be reduced to 49 minutes.
The project also includes a 2.3-kilometer mountain tunnel that directly connects Barangay Matina Biao and Barangay Waan in Davao City, reducing travel time between the said points to less than 5 minutes from the usual 44 minutes when passing through local roads.
Advanced Japanese know-how and technology will be adopted for the construction of the bypass road and tunnel. Construction will start this year and will be operational by 2023.
Both loan agreements carry an interest rate of one-tenth of one percent per annum for the non-consulting services and one-hundredth of a percent per annum for consulting services. This will be repaid within a period of 40 years inclusive of a 12-year grace period.
We express our heartfelt gratitude to the people and the Government of Japan, represented today by the officials of JICA and of course, by His Excellency, the Ambassador of Japan to the Philippines, for their generosity and earnestness in supporting our infrastructure modernization program. Given the challenging circumstances, these projects bring more support to our economic recovery well beyond their nominal value.
I also thank the Government of Japan for extending a 2-billion Japanese yen Non-Project Grant Aid to the Philippines for the acquisition of urgently needed medical equipment for our frontline health workers. In seasons of difficulty such as where we are in right now, we are always reassured by the strong bonds of friendship between Japan and the Philippines.
With the generous assistance of our development partners, we are confident to overcome this crisis and come out stronger and more resilient than before.
Thank you very much.
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