PH, Japan Sign ¥171B Loan Agreements for Infrastructure, Climate, and Health Projects

The Philippines and Japan have sealed five major loan agreements worth over ¥171 billion to fund critical infrastructure, climate resilience, and healthcare programs, reinforcing strong bilateral ties.

Signed between the Japan International Cooperation Agency (JICA) and the Philippine Department of Finance, the deals were finalized during the 15th High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation held on March 24 in Manila.

The loan package aims to bolster flood control, transportation, climate action, and health services—supporting the Philippines’ sustainable development goals (SDGs).

Loan Agreement Highlights:

• Davao City Bypass (Phase III) – ¥46.3B
  A 29.6-kilometer bypass with bridges and mountain tunnels designed to reduce traffic and boost regional logistics and economic activity.

• Pasig-Marikina River Channel Improvement (Phase IV) – ¥45.8B
  Enhances flood defenses in Metro Manila through riverbank fortification, dredging, and control gate construction.

• Cavite Industrial Flood Risk Management (II) – ¥14.5B
  Involves diversion channels and river upgrades to shield one of the country’s major economic zones from flood damage.

• Climate Change Action Program, Subprogram 2 – ¥35B
  Jointly funded with ADB and AFD, this program strengthens national climate resilience strategies and promotes low-carbon growth.

• Build Universal Healthcare Program, Subprogram 2 – ¥30B
  Focuses on expanding healthcare access, improving health financing, and digitizing health information systems for better service delivery.

JICA reaffirmed its commitment to supporting Philippine development, noting the country as one of Japan’s top Official Development Assistance recipients.