Government sets pledging session for Marawi

MANILA, Philippines — The government is set to hold on Nov. 28 a pledging session to gather foreign financing assistance for the rehabilitation and reconstruction of the war-torn Marawi City, the Department of Finance (DOF) said on Wednesday.

Finance Secretary Carlos Dominguez said the government invited its development partners for the event, including Japan which has to provide support for the recovery of Marawi.

“We also invited the government of Japan to take part in the pledging session for the Bangon Marawi Reconstruction and Rehabilitation Program to be held on Nov. 28 in Davao City,” Dominguez told reporters.

“This event will mark a significant milestone in the Philippine government’s financing strategy toward the comprehensive recovery and reconstruction of Marawi City and provide us the opportunity to thank our development partners, including Japan, for their generous commitments of support,” he said.

The rehabilitation and reconstruction of Marawi City is estimated to cost P86.5 billion, with P47.1 billion going to the Bangon Marawi Comprehensive Rehabilitation and Recovery Program (BMCRRP).

The DOF’s International Finance Group (IFG) earlier said about $64 million (P3.45 billion) of this amount is expected to be raised through a pledging session with the Philippines’ development partners.

Aside from Japan, the Philippines has also invited China to take part in the pledging session.

In addition, the DOF said it has identified the source for the P28.94 billion in funding requirement for Marawi.

These include the P13.5 billion allotted for the program under the 2018 and 2019 national budget, as well as a $100-million Emergency Assistance Loan from the Asian Development Bank.

An initial amount of P13.5 billion is also set to be raised through the issuance of retail “Marawi bonds” before the end of the year. Dominguez said more securities will be issued later on as the government needs more money for the program.

Japan has already extended various aid packages to the Philippines in support of Marawi.

In November last year, Manila and Tokyo signed a ¥1.5 billion grant agreement for the procurement and importation of heavy equipment for Marawi.

Japan has also agreed to provide a ¥1.1 billion funding support to provide core shelters and livelihood training to the residents of Marawi, and another $2 million worth of assistance to help the relief operations of the UN World Food Programme and the UN International Children’s Fund.