Philippines gets P8.78 billion COVID-19 loan from Japan

MANILA, Philippines — The Philippines has formally received nearly P9 billion in loans from the Japanese government to be used in boosting the country’s COVID-19 response.

The Japan International Cooperation Agency (JICA), Japan’s bilateral aid agency, on Tuesday released 20 billion Japanese yen (P8.78 billion) under the Post-Disaster Standby Loan Phase 2 (PDSL 2).

The disbursement comes less than a month after the teleconference between President Duterte and Japan Prime Minister Yoshihide Suga.

The third and latest disbursement under the PDSL 2 aimed to augment the Philippines’ COVID-19 war chest as the government lifted the strict restrictions in Metro Manila and nearby provinces.

The loan will also help finance the government’s pandemic response measures including testing and quarantine facility expansion and will be used for the social amelioration program for vulnerable sectors.

PDSL 2 is a contingency fund that allows the Philippines to withdraw up to 50 billion yen (P22 billion) worth of loans to help finance its response measures in the aftermath of natural and health-related disasters.

Since the PDSL 2’s signing in September 2020, Japan has so far disbursed a total of 40 billion yen (P17.44 billion) out of the total agreement.

The first tranche worth 10 billion yen (P4.39 billion) was made available in October 2020 following the extension of the state of calamity in the country due to COVID-19.

The same amount under the second tranche was released last January following the state of calamity declaration in Luzon due to typhoons Quinta, Rolly and Ulysses.

The loan has a repayment period of 40 years, including a grace period of 10 years, with a fixed interest rate of 0.01 percent per annum. Meanwhile, San Miguel Corp., the country’s diversified conglomerate, is spending P1 billion to vaccinate its roughly 70,000 employees, their families, as well as the company’s business partners.

SMC president and CEO Ramon Ang said the company continues to strengthen and recover from the onslaught of the COVID-19 pandemic and that it remains committed to investing in nation building.

“We will build back better,” Ang said during the company’s stockholders meeting yesterday.

He said the company is on track with the construction of SMC’s planned aerotropolis in Bulacan.

Ang said SMC is also in talks with international schools to locate in the area.

SMC is pursuing the construction of the P95.4 billion Pasig River Expressway.

Aside from these projects, the company will continue to support the government’s response against COVID-19.

The company had already spent P14 billion in various COVID-19 response efforts as part of its role as nation builder.

Ang said the company is committed to sustaining its growth momentum and further strengthening its recovery.

SMC reported a net income of P17.2 billion in the first quarter of 2021, up by a whopping 1,471 percent from P1.1 billion a year ago.

Almost all major businesses saw significant recoveries during the period led by Petron Corp. and San Miguel Foods. Ginebra San Miguel Inc. and SMC Global Power likewise registered strong growth.

SMC’s businesses include oil through Petron; food and beer through San Miguel Food and Beverage Inc.; liquor through Ginebra San Miguel; infrastructure through SMC Infrastructure.

Consolidated revenues amounted to P201.2 billion, down six percent versus as volumes of Petron, San Miguel Brewery and SMC Infrastructure were still affected by quarantine restrictions.