Exchanges of Notes for Japanese ODA Loan for the Republic of the Philippines (“Road Upgrading and Preservation Project”)
January 28, 2011
- The Government of Japan has decided to extend a Japanese ODA Loan of up to 40.847 billion JPY to the Republic of the Philippines. Notes to this effect were exchanged on January 28th (Fri) (same day local time) in Manila, between Mr. Makoto Katsura, Ambassador of Japan to the Philippines, and Mr. Alberto G. Romulo, Secretary of Foreign Affairs of the Philippines.
- In the Philippines, road transportation covers around 90% of passenger transport, and 50% of freight transport, but the rate of paved roads is as low as 23 percent. For further economic development and improvement of the country's investment climate, it is essential to build a network of paved roads. In the Philippines, the road maintenance budget is not sufficient. Also, the lack of adequate capacity for maintenance and administration of the roads may lead the further road deterioration.
- This project aims to pave and improve the existing roads across the Philippines (about 1,380 km) and to strengthen the road maintenance performance, ensuring the durability of the existing roads and improvement of transport capacity and efficiency. The implementation of this project will promote the arterial highways convenience and will also contribute to the improvement of the investment climate of the Philippines, and to the activities of Japanese companies.
- Terms and Conditions
(1) Interest: 1.4% per annum
(2) Repayment period:25 years(including a 7-year grace period)
(3) Procurement: General Untied
- (*This is a provisional translation. The above date denotes the date of the issue of the original press release in Japanese.)
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