Press Releases
Signing and Exchange of Notes Concerning Yen Loan and Grant Aid Projects to the Republic of the Philippines
On May 17, in Manila, the capital of the Republic of the Philippines, Mr. ENDO Kazuya, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of the Philippines, and Hon. Enrique A. Manalo, Secretary for Foreign Affairs of the Republic of the Philippines, signed and exchanged notes concerning the Yen Loan [see Note 1] project for the Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase 3) (loan provision of up to 64.38 billion yen) and the grant aid project for Human Resource Development Scholarship (grant provision of up to 327 million yen).
(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.
For the Yen Loan project, Japanese technology will be utilized in vehicles and in signaling and communication systems 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.
- Yen loan (The Maritime Safety Capability Improvement Project for the Philippine Coast Guard (Phase 3))
- Outline of the Project
This project aims to provide loan for the construction of five patrol ships to be used by the Philippine Coast Guard (PCG) and to improve the PCG’s capabilities to perform search and rescue, maritime law enforcement and other duties quickly and appropriately. It is expected that this cooperation will contribute to the enhancement of the maritime safety of the Republic of Philippines. - 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
- Outline of the Project
- Grant aid (The Project for Human Resource Development Scholarship)
This project aims to support young Philippine government officials who are expected to play an active role in the core of the Philippine government to obtain a master's degree at a Japanese graduate school, thereby contributing to solving the country's development issues and strengthening bilateral relations through the establishment of human networks.
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).