THE Japanese Embassy in Manila has signed two official development assistance (ODA) agreements with the Philippines worth a total of ¥31.1 billion, or around P12 billion.
“The government and people of Japan hope these ODA will expedite the enhancement of the Philippines’ stability and security,” Japanese Ambassador to the Philippines Koshikawa Kazuhiko said in a statement.
The ODA packages cover the third phase of the Post-Disaster Standby Loan (PDSL) worth ¥30 billion and a ¥1.1-billion grant for the Philippine Coast Guard’s (PCG) satellite data communication system.
The embassy said that Mr. Koshikawa and Foreign Affairs Secretary Enrique A. Manalo signed the exchange of notes on the loan facility and grant project on Tuesday.
The post-disaster loan will “support swift recovery in the aftermath of natural and health-related disasters, providing a quick-disbursing budgetary support for the Philippines’ calamity response programs.”
The loan’s repayment period is 30 years after a grace period of 10 years. It also has a fixed interest rate of 0.01%.
“With Typhoon Egay having attacked the Philippines just last month, it is evident that our countries are frequently exposed to natural disasters such as typhoons, earthquakes, and volcanic eruptions,” Mr. Koshikawa said.
The loan will also help the Philippine government by “easing its funding and budgetary constraints, to execute more swift and flexible initial responses to severe disasters in the coming years,” he added.
The first phase of the post-disaster standby loan was approved in 2013, which supported rehabilitation efforts due to Typhoon Yolanda. In 2020, the second phase of the loan helped finance the Philippine government’s post-pandemic recovery.
Meanwhile, the grant will establish a satellite data communication system for the coast guard.
“Being an archipelago also, Japan understands the importance of vigilance in maritime security. With this procurement, the PCG will be able to ensure smooth communications between its 10 44-meter and two 97-meter vessels and the PCG headquarters inclusive of free communication charges for 10 years,” Mr. Koshikawa said.
“In light of the situation in the South China Sea, this is a very timely cooperation that will enable the decision makers of the Philippine government here in Manila to grasp in real time the situation offshore. Moreover, this will be extremely effective in terms of crisis management and response,” he added.
The embassy said that the project will improve maritime domain awareness and enhance the maritime law enforcement capabilities of the PCG.
“Given our two countries’ similar topographies, I would like to emphasize that Japan will continue to support through various ways the Philippines’ nation-building and resiliency efforts, along with security enhancements, as we both strive to build back better societies,” Mr. Koshikawa added.
In 2021, Japan was the country’s top provider of ODA with loans and grants amounting to $10.36 billion. It accounted for 32% of the Philippines’ ODA portfolio. — Luisa Maria Jacinta C. Jocson