MANILA, Philippines — The Philippines and Japan yesterday signed two loan agreements worth P75.5 billion for the construction of two big-ticket infrastructure projects in Visayas and Mindanao.
During the ceremonial signing at the Department of Finance (DOF) office in Manila, Finance Secretary Carlos Dominguez and Japan International Cooperation Agency (JICA) chief representative Eigo Azukizawa finalized the P57-billion loan support for the Cebu-Mactan Fourth Bridge and Coastal Road Construction Project, and the P18.5-billion supplemental financing for the Davao City Bypass Construction Project.
Both deals carry a 0.10 percent interest rate per year for non-consulting services and 0.01 percent interest for consulting services, with a maturity period of 40 years, inclusive of a 12-year grace period.
Finance Undersecretary Mark Dennis Joven said the loans brought the total amount of financing support from JICA to the Philippines to $1.5 billion for this year.
According to Dominguez, the signing of the two projects bodes well for the recovery of the Philippine economy.
“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,” Dominguez said.
“We are happy, therefore, that two major projects facilitated by 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,” he said.
Azukizawa, for his part, expressed the same sentiment, pointing out that the loan agreements were signed even amid the global health crisis.
“I hope that these projects will also contribute to the economic recovery of the country amidst the coronavirus disease 2019 or COVID-19 pandemic as we fully support your government’s pronouncement that restarting and accelerating the Build Build Build program should be one of many strategies for reviving the Philippine economy,” he said.
The Cebu-Mactan Fourth Bridge and the Coastal Road Construction project, known as the biggest infrastructure project in the Visayas under the Build Build Build program, has a total estimated cost of P76.4 billion.
Dominguez said JICA committed to fund 75 percent of the project cost, while the remaining 25 percent or P18.82 billion would be shouldered by the Philippine government. JICA will also finance the detailed engineering design for the project through a grant.