The Department of Finance (DOF) said on Thursday it is set to execute around USD1.5 billion worth of pipeline projects with the Japan International Cooperation Agency (JICA) for 2024 to 2025.
The DOF and JICA are also working toward executing four major loan agreements within the year.
In a statement, the DOF said the development was discussed during a meeting between DOF Undersecretary for the International Finance Group (IFG) Joven Balbosa and JICA’s Director General of Southeast-Asia and Pacific Department Hayakawa Yuho on April 18, 2024 at the JICA Office in Washington, D.C.
During the meeting, the DOF and JICA discussed the timeline and preparations required to facilitate the signing of the loan agreements for projects on maritime safety, roads and flood risk management, which are targeted before the end of the year.
JICA, meanwhile, expressed its plan to expand its funding into other sectors that are in line with the Marcos administration’s development objectives, such as agriculture, education and health.
JICA also expressed its openness to scale up its policy-based lending, with an intent to co-finance the Climate Change Action Program (CCAP) Subprogram 2 with the Asian Development Bank and Agence Française de Développement.
The CCAP will support the Philippines in implementing its national climate policies, including its Nationally Determined Contribution.
The program will intensify efforts to transform key sectors toward a climate-resilient and low-carbon economy.
The DOF also sought JICA’s assistance in bringing in more private sector financing to support the administration’s development goals as the Philippines transitions to an upper-middle income country status.
Last year, Japan was the country’s largest official development assistance (ODA) partner with total loans and grants amounting to USD12.30 billion.
The amount accounted for about 32.82 percent of the total ODA as of December 2023. (PNA)
