Provision of Yen Loans to the Philippines (Advance Notice)
September 6, 2016
1. In the meeting between Mr. Shinzo Abe, Prime Minister of Japan, and H.E. Mr. Rodrigo R. Duterte, President of the Republic of the Philippines, held today (September 6; same day in local time) in Vientiane, the capital of the Lao People’s Democratic Republic, Prime Minister Abe pledged the provision of yen loans (up to 16.455 billion yen) for the Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase 2). Japan and the Philippine government willplan to sign official documents of exchange related to the yen loan in the near future.
2. Target Project and Loan Ceiling
Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase 2): 16.455 billion yen
3. Loan Terms
(1) Interest rate : 0.1% per year (2) Repayment (grace) period : 40 years (including a 10-year grace period) (3) Procurement terms : Japan only
4. Summary of the Target Project
The Project funds construction of two patrol ships for the Philippine Coast Guard (PCG) and aims to improve the PCG’s capabilities to quickly and appropriately respond to maritime incidents, such as search and rescue, and maritime law enforcement, along the country’s coasts and thereby contributing to maritime safety of the country.