ABS-CBN News
Published Mar 26, 2024 08:30 PM PHT
The Philippines has secured funding for at least two major infrastructure projects, according to the Department of Finance.
The DOF said Finance Secretary Ralph Recto has inked agreements with the Japan International Cooperation Agency (JICA) for Phase 1 of the Metro Manila Subway Project and the first phase of the Dalton Pass East Alignment Road Project (DPEARP).
The agreements, inked under President Ferdinand R. Marcos, Jr.’s Build Better More program, were announced during a ceremony on March 26 at the JICA Philippine Office in Makati, the DOF said.
“The projects are building blocks in our ascent to becoming an upper-middle-income country hopefully by 2025 and, eventually, the world’s 14th-largest economy by 2075,” Recto said.
The first agreement worth 150 billion yen or around P55 billion, is the third tranche of financing for the Subway.
The second agreement, worth 100 billion yen or around P37 billion, is the first tranche of the DPEARP. The new road will span 23 kilometers and will be an alternative route bypassing the existing 77-km Dalton Pass East Bypass Route.
“It also includes a 6.121-km tube section and 10 bridges with a total length of 5.828 km, as well as slope protection works,” the DOF said.
JICA has offered the Philippines highly concessional financing terms for both big-ticket projects, carrying an interest rate of 0.3 percent per annum for non-consulting services and 0.2 percent per annum for consulting services, to be repaid in 40 years, inclusive of a 10-year grace period, the DOF noted.
The DOF said Transportation Secretary Jaime Bautista; Public Works Secretary Manuel Bonoan; and Embassy of Japan Economic Minister Nihei Daisuke witnessed the signing of the loan agreements.
JICA Chief Representative Takema Sakamoto pledged continued assistance to the Philippines, emphasizing the projects’ significance in strengthening bilateral ties between Japan and the Philippines, the DOF added.