Japanese Ambassador Toshinao Urabe and Secretary of Foreign Affairs Alberto F. Del Rosario exchanged notes for six (6) ODA loans amounting to 59.019 billion yen (approximately 32.15 billion pesos) and two (2) grant aid projects amounting to 2.394 billion yen (approximately 1.30 billion pesos) on March 29, 2012 at the Department of Foreign Affairs. In addition to this, on March 21, Ambassador Urabe and Secretary Del Rosario exchanged notes for a grant aid project amounting to 250 million yen (approximately 136 million pesos). The total amount of these 9 ODA projects is 61.663 billion yen (approximately 33.594 billion peso).
The signed projects this time cover a wide-range of fields: infrastructure such as road, disaster prevention such as river improvement, and agricultural development such as rehabilitation of irrigation facilities. These projects will support the efforts by the Philippine Government and the Filipino people in achieving “Inclusive Growth,” as described in the “Philippine Development Plan 2011-2016” issued by the Philippine Government, in a comprehensive way from the viewpoint of achieving sustainable economic growth through improvement of investment environment, overcoming vulnerability to natural disaster and stabilization of production base.
Japan believes that these projects will strengthen not only the friendship between the peoples of Japan and the Philippines, but also the existing strategic partnership between Japan and the Philippines.
(1) Yen Loan Projects
(a) Central Luzon Link Expressway Project
This project, amounting to 22.796 billion yen (approximately 12.419 billion pesos) improves logistics transportation between Metro Manila and Central Luzon by expanding Subic-Clark-Manila-Batangas Corridor northward through construction of a 31-km expressway connecting Tarlac and Cabanatuan Cities, and thereby contributing to economic development in the area.
(b) Arterial Road Bypass Project (Phase II)
This project, amounting to 4.591 billion yen (approximately 2.501 billion pesos) alleviates serious traffic congestion and enhance transportation capacity and efficiency around Plaridel City through construction of a bypass along Philippine-Friendship Highway, which is the only arterial national road directly connecting Metro Manila and Central Luzon, and thereby contributing to economic development in the area.
(c) Pasig-Marikina River Channel improvement Project (Phase III)
This project, amounting to 11.836 billion yen (approximately 6.448 billion pesos) utilizes Japanese technologies for disaster prevention including structural measures such as construction and improvement of revetments and dredging along the Pasig-Marikina river and non-structural measures such as establishment of an information website of the basin to achieve mitigation of flood damage in the Metro Manila, and thereby contributing to the economic development of the area.
(d) Flood Risk Management Project for Cagayan River, Tagoloan River and Imus River
This project, amounting to 7.546 billion yen (approximately 4.111 billion pesos) aims to mitigate flood damage by structural measures such as embankment and bank protection, and non-structural measures such as preparation of hazard maps of the target areas along Cagayan , Tagoloan and Imus River basins, and thereby contributing to the sustainable and stable economic development in the target area.
(e) National Irrigation Sector Rehabilitation and Improvement Project
This project, amounting to 6.187 billion yen (approximately 3.371 billion pesos) is for the rehabilitation of irrigation facilities, institutional strengthening of Irrigators association for operation and maintenance, and agricultural support. It will contribute to enhancing rice productivity and sustainable operation and maintenance of the irrigation facilities, and thereby contributing to stable food production and income generation for farmers.
(f) Mindanao Sustainable Agrarian and Agriculture Development Project
This project, amounting to 6.063 billion yen (approximately 3.303 billion pesos) is for the construction of small scale irrigation facilities, farm to market roads, and capacity building for farmers in agrarian reform areas in Mindanao. The project aims to increase agricultural productivity, product value, and income of Agrarian Reform Beneficiaries and other small scale farmers through provision of small scale agricultural infrastructure and agricultural / organizational capacity building support, and thereby contributing to increase competitiveness and sustainability of agriculture in the target area.
(2) Grant Aid Projects
(a) Project for the Improvement of Equipment for Disaster Risk Management
This project, amounting to 1 billion yen (approximately 544.8 million pesos) provides machinery and systems relating to disaster prevention to enhance the Philippine agencies’ capability to distribute and manage information in a time of disaster by utilizing the experience and knowledge of Japan in the field of disaster prevention.
(b) Project for the Bridge Construction for Expanded Agrarian Reform Communities Development, Phase II (Umiray Bridge)
This project, amounting to 1.394 billion yen (approximately 759.5 million pesos) is for the construction of a 360 meters long bridge to connect the provinces of Aurora and Quezon. The Project is expected to generate additional income for farmer beneficiaries and ultimately upgrade the socio-economic and environmental conditions in the area as well as to provide safe access for the peoples living in the natural disaster prone area.
(c) Non-Project Grant Aid “Provision of Industrial Products”
This project, amounting to 250 million yen (approximately 136.2 million pesos) provide s funds to purchase necessary industrial products to implement various projects in areas such as health, education, vocational training, etc.
Yen loan projects (1) (c), (d) and Grant aid projects (2) (a), (b) are in line with the financial assistance up to 2012 that the Government of Japan announced in December, 2009, aiming to accelerate developing countries’ measures against climate change. Based on the outcome of COP 17, Japan will cooperate with the Philippines in the issue of climate change for pursuing a fair and effective international framework with the participation of all major emitters.
