PHL and JPN ink five loan agreements for key infrastructure and development projects

Finance Secretary Ralph Recto and JICA Philippines Chief Representative BABA Takashi during the signing ceremony. They are joined by Public Works and Highways Secretary Manuel Bonoan (leftmost) and Japan Ambassador to the Philippines ENDO Kazuya (rightmost).

The Governments of the Philippines and Japan, through the Japan International Cooperation Agency (JICA), have signed loan agreements for five major development projects, further strengthening the collaboration between the two countries. The signing ceremony took place during the 15th High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation on March 24, 2025, at the Bureau of the Treasury in Intramuros, Manila.

With a total value exceeding JPY 171 billion, the agreements will fund major infrastructure and development initiatives aimed at enhancing climate resilience, mitigating flood risks, improving transportation efficiency, and expanding healthcare access – all contributing to the attainment of key Sustainable Development Goals (SDGs).

One of the projects covered in the loan agreements is the Davao City Bypass Construction Project (Phase III), which has been allocated JPY 46.338 billion. This project seeks to alleviate worsening traffic congestion in Davao City by constructing a 29.6-kilometer bypass road, including bridges and mountain tunnels. The new road will significantly reduce travel time between key areas, improve logistics for businesses in the region, and boost economic development in the province.

Another major initiative, the Pasig-Marikina River Channel Improvement Project (Phase IV) (II), will be supported by a JPY 45.759 billion loan to address the flooding risk in Metro Manila. The project is implementing river channel improvement works, including bank protection, dredging, and widening of key sections of the Marikina River, as well as construction of flood control gates. Structural improvements along the riverbanks will help protect communities from devastating floods by the channel overflow, thereby ensuring the safety and sustainable urban economic development of the region.

The Cavite Industrial Area Flood Risk Management Project (II) will receive JPY 14.483 billion to mitigate flood risks in one of the country’s key economic hubs. The project includes the construction of flood diversion channels, river improvements, and the development of resettlement sites for affected communities. By safeguarding industrial zones in Cavite, the project will enhance disaster resilience and protect the region’s economic stability.

JPY 35 billion is earmarked for the Climate Change Action Program, Subprogram 2, which accelerates the Philippines’ efforts to implement climate change policies and sustainable financing mechanisms. Through this program, the government looks to strengthen institutional planning for climate action, enhance resilience to climate impacts, and promote low-carbon development pathways. Aside from JICA, the Asian Development Bank (ADB) and the Agence Française de Développement (AFD) are co-financing this initiative which reinforces international collaboration in climate policy.

Finally, the JPY 30 billion loan for the Build Universal Healthcare Program, Subprogram 2, seeks to improve healthcare access and service delivery in the Philippines. The program supports the government’s Universal Health Care (UHC) policy reforms by enhancing sustainable health financing, integrating healthcare services, and improving information management systems. By strengthening the healthcare system, the project will help ensure that more Filipinos will receive quality and affordable healthcare services. The initiative is co-financed by JICA, ADB, and others.

The signing ceremony was attended by high-ranking officials from both governments, led by representatives from the Philippine Department of Finance (DOF), Department of Public Works and Highways (DPWH), Department of Budget and Management (DBM), the National Economic and Development Authority (NEDA), Embassy of Japan, and JICA. The event reaffirmed Japan’s commitment to supporting the Philippines’ transition to an upper-middle-income country by 2025 and advancing public-private partnerships in infrastructure development.

The Philippines is among the top recipients of Japan Official Development Assistance (ODA) globally, underscoring the heart-to-heart ties between the two nations.