Signing and Exchange of Notes concerning Japanese ODA Loans to the Philippines

October 26, 2016
Japanese

  1. 1. On Wednesday, October 26 in Tokyo, after the Japan-Philippines Summit Meeting, Japanese Ambassador to the Philippines Kazuhide Ishikawa and H.E. Mr. Perfecto R. Yasay, Jr., Secretary of Foreign Affairs, signed and exchanged notes concerning two yen loan projects. The total amount of the projects is up to 21.383 billion yen. The signing was witnessed by Mr. Shinzo Abe, Prime Minister of Japan, and H.E. Mr. Rodrigo R. Duterte, President of the Republic of Philippines.

    2. Summary of the Target Projects

    (1) Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase II)
    The objective of this project is to construct two patrol ships to be used by 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. It is expected that this cooperation will contribute to the enhancement of the maritime safety of the Republic of Philippines.

    (2) Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation: HARVEST
    The objective of this project is to promote activities that contribute to the creation of employment opportunities and the enhancement of household income through the improvement of access to financing and the vitalization of economic activities in the Autonomous Region in Muslim Mindanao and its environs by providing necessary funds for investment in plant and equipment, operating capital, etc. to private businesses and agricultural cooperatives there. It is expected that this cooperation will contribute to peace and development in that region.

    3. Terms and conditions of the loan
     

    Project Name Loan Ceiling
    (billion yen)
    Interest rate
    (annual %)
    Repayment (grace)
    period (years)
    Procurement terms
    Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase II) 16.455
    0.1
    40 (10) Japan only
    Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation: (HARVEST) 4.928 1.4 25 (7) General untied

    (Reference)Japan-Philippines Relations (Basic Data)
    The Republic of the Philippines has an area of 299,400 km2, (8/10th of Japan’s), a population of 92.34 million (2010), and a per capita gross national income (GNI) of 3,270 USD (2013, World Bank).