Provision of Yen Loan to the Philippines (Advance Notification)
October 30, 2017
1. On October 30, Mr. Shinzo Abe, Prime Minister of Japan, pledged the provision of a yen loan for the Metro Manila Subway Project (Phase 1) (I) and another project (total loan provision of up to 113.929 billion yen) to H.E. Mr. Rodrigo R. Duterte, President of the Republic of the Philippines, at the Japan-Philippines Summit Meeting held in Tokyo. Based on this pledge, the Government of Japan and the Government of the Philippines are scheduled to sign an exchange of notes concerning the yen loan in the future.
2. Overview of the target projects
(1) Metro Manila Subway Project (Phase 1) (I) (Provision of loan of up to 104.53 billion yen)
This project will contribute to relieving serious traffic congestion in Metro Manila by seeking to meet growing transportation demand , as well as to ease atmospheric pollution and climate change through the development of a subway in Metro Manila. The implementation of this project is expected to contribute to sustainable growth by promoting investment in the Philippines.
(2) Arterial Road Bypass Project (Phase III) (Provision of loan of up to 9.399 billion yen)
The project will contribute to relieving traffic congestion and improving transportation capacity and efficiency in the vicinity of Plaridel City, a major urban area in the suburbs of northern Metro Manila, by constructing a bypass road along the Philippine-Japan Friendship Highway, an important general arterial highway that directly connects Metro Manila with Central Luzon, in the vicinity of the city. The implementation of this project is expected to contribute to sustainable growth by promoting investment in the Philippines.
3. Loan terms
(1) Target project: (1) in 2. above
(1) Rate of Interest : 0.1% per annum (0.01% per annum for consulting services) (2) Repayment period : 28 years after the grace period of 12 years (3) Procurement terms : Japan tied
(2) Target project: (2) in 2. above
(1) Rate of Interest : 1.5% per annum (0.01% per annum for consulting services) (2) Repayment period : 20 years after the grace period of 10 years (3) Procurement terms : General untied
[Reference] Japan-Philippines Relations (Basic Data)
The Philippines covers an area of approximately 300,000 square kilometers (roughly 80% the size of Japan). It has a population of approximately 100.98 million (Philippines national census, 2015) and a gross national income (GNI) per capita of 3,580 U.S. dollars (World Bank, 2016).