Press Releases

Signing and Exchange of Notes Concerning Two Yen Loan projects to the Republic of the Philippines

March 26, 2024

On March 26th, in Manila, the capital of the Republic of the Philippines, Mr. Kenichi MATSUDA, Minister and Deputy Chief of Mission of the Embassy of Japan, and Hon. Enrique A. Manalo, Secretary for Foreign Affairs of the Republic of the Philippines, signed and exchanged notes concerning two Yen loan [see Note 1] projects for up to 250 billion yen in total.
(Note 1) Yen loan: Yen loans support developing countries by providing low-interest, long-term and concessional funds to finance their development efforts. For developing countries, since the funds are subject to repayment to Japan, it is expected to lead to effective utilization and self-sustaining development.

Japanese technology will be utilized in the construction of highways including tunnels, and subway under Japan's Special Terms for Economic Partnership (STEP)[see Note 2].
(Note 2) STEP: STEP was introduced in July 2002, with a view to raising the visibility of Japanese ODA among citizens in both recipient countries and Japan through best use of advanced technologies and know-how of Japanese firms.

1. Outline of the Projects

  1. Dalton Pass East Alignment Road Project (I) (up to 100 billion yen)
    This project will contribute to improve travelability by constructing a bypass road on the east side of the current Dalton Pass Road, thereby contributing to the enhancement of connectivity and economic revitalization of the area.
  2. Metro Manila Subway Project (Phase 1) (III) (up to 150 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 advance the development of the transportation and traffic network in the entire Metro Manila area.

2. Loan terms

  • Interest rate: 0.3% per annum (0.2% annum for the consulting services portion)
  • Repayment period: 40 years (including a 10-year grace period)
  • Procurement terms: Japan tied
(Reference) Basic Data on the Republic of the Philippines

The Republic of the Philippines has an area of approximately 300,000 square kilometers (approximately 80% of the Japan’s area), a population of about 115.56 million people (2022, World Bank), and a gross national income (GNI) per capita is 3,950 USD (2022, World Bank).

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