Japanese Ambassador Makoto KATSURA and the Philippines' Secretary of Foreign Affairs Alberto Romulo signed and exchanged notes for the supplemental loan that will finance the completion of the Subic-Clark-Tarlac Expressway (SCTEX) Project on March 27, 2008 at the Department of Foreign Affairs in Pasay City .
The Government of Japan, through the Japan Bank for International Cooperation (JBIC), provides a supplemental loan of 17.1 billion yen (approximately 7.1 billion pesos) for a total Project amount of 59 billion yen (approximately 28 billion pesos). With an interest rate of 0.95% per annum and a 40-year payment period with a 10-year grace period, this yen loan provides the most concessional terms among various funding sources. The Bases Conversion Development Authority (BCDA) provided the 15% counterpart fund.
The new Expressway provides a direct link among Subic Bay Freeport and Special Economic Zone, the Clark Special Economic Zone and the Central Techno Park in Tarlac. This project will facilitate human and cargo transport in the Central Luzon area and contribute to the integrated and sustainable development of the regional economy.
Once completed, the 94-kilometer SCTEX will have 34 bridges, eight (8) interchanges and a four-lane divided toll road and is expected to dramatically cut travel time between Clark and Subic to only 40 minutes, between Clark and Tarlac to only 30 minutes, and from NLEX in Metro Manila to Subic to around one hour and 30 minutes.
The Japanese Government's assistance supports the development of the Philippine transportation sector in line with the President Arroyo's 10-point agenda. Japan is the Philippines ' largest source of ODA and has been a long-time partner in the construction and rehabilitation of national highways, particularly in the improvement of road networks and reduction of traffic congestion.
Remarks by Ambassador Makoto Katsura
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