Japanese ODA Loan to the Philippines

June 18, 2009
Japanese

The Government of Japan has decided to extend to the Government of the Republic of the Philippines a Japanese ODA loan of up to 44.988 billion yen in total to assist the country’s efforts for economic and social development. Notes to this effect were exchanged on June 18 (Thu) in Tokyo between Mr. Makoto Katsura, Ambassador of Japan to the Philippines, and Mr. Alberto G. Romulo, Secretary, Department of Foreign Affaires of the Republic of the Philippines.

Applicable Projects and Loan Amounts
(1) Agricultural Credit Support Project                        14.608 billion yen
(2) Logistics Infrastructure Development Project            30.38 billion yen
                                                                  Total:  44.988 billion yen
Outline of the Projects

This ODA loan is being extended as part of the 2 trillion yen in ODA support to realize the Asian Growth Initiative that Prime Minister Taro Aso announced in April 2009. Both projects provide support for the activities of agriculture-related organizations, local self-governing bodies, and private-sector businesses through financial institutions within the Philippines.

(1) Agriculture Credit Support Project
This project is intended to promote investment activities that contribute to improving agricultural productivity and create agriculture-related job opportunities in the rural areas through providing loans for production funds, operating funds, capital investment funds, etc. to agricultural cooperatives, farmer organizations, agriculture-related small and medium-sized businesses, and large-scale agribusinesses corporations throughout the Philippines via the Land Bank of the Philippines.

(2) Logistics Infrastructure Development Project
This project is intended to promote investment activities to maintain distribution infrastructure, to reduce distribution costs, and to increase the quantity of distributed goods through providing loans for medium and long-term funds for the maintenance of transportation and distribution infrastructure to local authorities, private-sector businesses, government-financed corporations, and cooperatives throughout the Philippines via the Development Bank of the Philippines.
Terms and Conditions

Applicable Project: (1)
    (A) Interest: 1.4% per annum (general terms and conditions)
    (Special rate of 0.01% per annum for Consulting Services)
    (B) Repayment period: 30 years (including a 10-year grace period)
    (Special period of 40 years [including a 10-year grace period] for Consulting Services)
    (C) Procurement: General untied

In addition, special terms and conditions apply to subloans for small and medium-sized businesses (interest: 0.65%, repayment period: 40 years [including a 10-year grace period]).

Applicable Project: (2)
    (A) Interest: 1.4% per annum (general terms and conditions)
    (Special rate of 0.01% per annum for Consulting Services)
    (B) Repayment period: 30 years (including a 10-year grace period)
    (C) Procurement: General untied

(END)

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