Press Releases

Signing and Exchange of Notes Concerning Five Yen Loan Projects to the Republic of the Philippines

March 21, 2025
Japanese

On March 21st, in Manila, the capital of the Republic of the Philippines, Mr. Kazuya ENDO, 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 five Yen loan projects for up to 171.58 billion yen in total.

  1. Outline of the Projects
    1. Climate Change Action Program (up to 35 billion yen)
      This program aims to support the Philippines in improving and planning the implementation of high-priority climate change policies through financial assistance, thereby strengthening institutions and systems for the introduction of climate change financing, enhancing resilience to the impacts of climate change, and enhancing planning and implementation capacity to realize a low-carbon society, thereby contributing to the realization of the country's climate change action goals.
    2. Build Universal Health Care Program (up to 30 billion yen)
      This program aims to improve equitable access to quality health services in the Philippines by supporting the implementation of priority policies and other measures to achieve universal health coverage through financial assistance, thereby contributing to the promotion of economic stability and social development.
    3. Davao City Bypass Construction Project (III) (up to 46.338 billion yen)
      This project is to construct a bypass road in Davao City, Mindanao Island, the Philippines, from the southern end to the central part of the city, in order to cope with the increasing traffic volume, to improve traffic congestion in the city, and to improve logistics in the largest economic zone in Mindanao with the city at its core, thereby contributing to the economic development of Mindanao.
    4. Pasig-Marikina River Channel Improvement Project (Phase IV) (II) (up to 45.759 billion yen)
      This project aims to reduce flood damage in the heart of Metro Manila by rehabilitating the Pasig-Marikina River, constructing movable weirs, and implementing non-structural measures against flooding in Metro Manila, thereby contributing to overcoming the vulnerability of the area and stabilizing the livelihood and production infrastructure.
    5. Cavite Industrial Area Flood Risk Management Project (II) (up to 14.483 billion yen)
      This project aims to reduce flood damage in Cavite Province in the Philippines by constructing and rehabilitating diversion canals and rehabilitating rivers, thereby contributing to sustainable and stable economic development in the region, especially in industrial areas.
  2. Loan terms
    1- (1)
    • Interest rate: 1.5% per annum
    • Repayment period: 15 years (including a 5-year grace period)
    • Procurement terms: Untied
    1- (2)
    • Interest rate: 1.5% per annum
    • Repayment period: 15 years (including a 5-year grace period)
    • Procurement terms: Untied
    1- (3)
    • Interest rate: 0.65% per annum (0.55% annum for the consulting services portion)
    • Repayment period: 40 years (including a 10-year grace period)
    • Procurement terms: Japan tied
    1- (4)
    • Interest rate: 0.65% per annum (0.55% annum for the consulting services portion)
    • Repayment period: 40 years (including a 10-year grace period)
    • Procurement terms: Japan tied
    1- (5)
    • Interest rate: 2.25% per annum (0.55% annum for the consulting services portion)
    • Repayment period: 30 years (including a 10-year grace period)
    • Procurement terms: Untied

(Reference1) 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).

(Reference2) 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.

(Reference3) 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.

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