Ambassador Endo and DFA Secretary Manalo Sign and Exchange Notes on Program and Supplemental Loans for Key Philippine projects

On 21 March 2025, Ambassador ENDO Kazuya and Department of Foreign Affairs (DFA) Secretary Enrique Manalo signed and exchanged notes on two (2) program loans and three (3) supplemental loans, which will support the development of critical infrastructure, climate change initiatives, and health programs in the Philippines.

 

The funds will support the following key projects:

Funding for the Climate Change Action Program will assist the Philippines to meet its climate goals, including its Nationally Determined Contribution (NDC), and to further strengthen the country’s climate change adaptation efforts. It will intensify initiatives to transform key sectors into a climate-resilient and low-carbon economy.

 

The loan for the Build Universal Health Care Program will support the Philippines in achieving Universal Health Coverage (UHC). The funding will help strengthen health financing, service delivery, and information management.

 

The supplemental loan for the Davao City Bypass Construction Project III will support the construction of the 30-kilometer bypass road, including the construction of 2.3 kilometers of underground twin-tube tunnels, which, upon completion, will become the longest tunnels in the Philippines. This loan supplements the first and second loans signed in August 2015 and June 2020 respectively, and will significantly improve transportation logistics and ease traffic congestion in the largest economic hub of Mindanao Island.

 

Together with the first loan signed in November 2018, the additional funding for Phase IV of the Pasig-Marikina River Channel Improvement Project will facilitate the completion of the remaining flood mitigation structures. This will provide better flood protection and minimize the potential damage caused by the overflow from the Pasig-Marikina River in the Metro Manila area. 

 

Complimenting the first loan for this project signed in October 2017, the third supplemental loan will extend drainage channels and widen existing diversion channels. This will benefit over 8,000 households as well as numerous manufacturing plants in General Trias, Imus, Kawit, Noveleta and Rosario, Cavite.  The improvements aim to enhance flood risk management in the Cavite industrial area.

 

Japan continues to be the Philippines’ top ODA donor, providing assistance across multiple sectors including security, transportation, infrastructure, tourism, health, and environment. These loans are a testament to the enduring and mutually beneficial partnership between Japan and the Philippines, aimed at creating long-term solutions for the country’s most pressing challenges.  

[Terms and Conditions] 

Project	Maximum amount of loan	Rate of interest	Repayment period
Climate Change Action Program	35,000 million yen	1.5% per annum	15 years (including a 5-year grace period)
Build Universal Health Care Program	30,000 million yen	1.5% per annum	15 years (including a 5-year grace period)
Davao City Bypass Construction Project (III)	46,338 million yen	0.65% per annum (0.55% per annum for consulting services)	40 years (including a 10-year grace period)
Pasig-Marikina River Channel Improvement Project  (Phase IV) (II)	45,759 million yen	0.65% per annum (0.55% per annum for consulting services)	40 years (including a 10-year grace period)
Cavite Industrial Area Flood Risk Management Project (II)	14,483 million yen	2.25％ per annum (0.55% per annum for consulting services)	30 years (including a 10-year grace period)