Japanese ODA Loan to the Republic of the Philippines

March 28, 2008

The Government of Japan has decided to extend to the Government of the Republic of the Philippines an additional Japanese ODA Loan totaling 17.106 billion yen, for the Subic-Clark-Tarlac Expressway Project. Notes to amend the maximum amount of the loan for this project were exchanged on March 27 (Thu) in Manila between Amb. Makoto Katsura, Japanese Ambassador to the Philippines, and Mr. Alberto G. Romulo, Secretary of Foreign Affairs of the Philippines.
As this project aims to build an expressway in the Central Luzon region to make logistics more efficient there, the Government of Japan granted 41.931 billion yen for this project as the Special ODA Loan in 2001. This time, the Government of Japan decided to provide additional loan to cover costs which arose during the implementation of the project. The additional cost includes the inflated prices of steel products and exchange rate fluctuations due to the strong Philippine peso. As a result, the total maximum amount of the loan for this project now adds up to 59.037 billion yen.
Terms and conditions of the loan (Applying the same conditions as when Notes were signed):

(1) Interest rate: 0.95% (0.75% for consultation service)

(2) Repayment period: 40 years (including 10-year grace period)

(3) Procurement method: Japan tied (bilateral tied for consultation service)

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