PH, Japan ink $202-M loan for road project
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 19 Jun 2019 16:59:08 +0000
CLARK, Pampanga: The Philippines and Japan have sealed a $202.04-million Japanese yen loan agreement for a road network project that aims to revitalize the local economy of and reduce poverty in Mindanao’s conflict-affected areas.
On the sidelines of the 8th High-Level Meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economy Cooperation here on Tuesday night, Finance Secretary Carlos Dominguez 3rd and Japan International Cooperation Agency (JICA) Senior Vice President Yasushi Tanaka signed on behalf of Manila and Tokyo, respectively, the deal for the Road Network Development Project in Conflict-Affected Areas in Mindanao.
This project “involves the construction, rehabilitation and improvement of 176.6-kilometers (km) of [roads linking] the Bangsamoro Autonomous Region in Muslim Mindanao to the trade centers of Mindanao,” Dominguez said in a press conference after the signing.
Its implementation is targeted to start at the third quarter of the year, he added.
JICA said the amount would fund the consulting services and civil works involved in building and improving access roads, including 19.8 km of the Marawi Ring Road and 23 km of the Marawi Trans-Central Road.
Acknowledging that decades of conflict had slowed down Mindanao’s socioeconomic development, the Japanese embassy in Manila has said the project sought to foster economic activity, ensure smooth commodity flow and improve the region’s accessibility.
“The project will construct and improve access roads to arterial roads linking the main cities of Mindanao, thereby contributing to the revitalization of the regional economy, the reduction of poverty and the consolidation of peace in conflict-affected areas in Mindanao,” it had said in a statement.
“This project will contribute to improve logistics, stimulate economic activity and strengthen access to the region with the construction and refurbishment of roads and bridges in the conflict-affected areas of Mindanao,” the embassy added.
More deals for infra projects seen
Meanwhile, Dominguez said that during the high-level meeting, Philippine and Japanese officials also committed to work toward signing various agreements for other infrastructire projects within this year.
These involve a supplemental loan for the ongoing Davao City Bypass Construction Project; three more loan accords for the New Mactan
Bridge Construction Project in Cebu; the second phase of the Metro Manila Priority Bridges Seismic Improvement Project; and the second tranche loan for the first phase of the Metro Manila Subway Project.
The Finance chief also said that during the meeting, the two sides also discussed their joint strategy for future cooperation in anticipation of the Philippines’ expected elevation to upper middle-income country status.
On the implementation of the Philippines’ infrastructure projects in cooperation with Japan, he said the two sides agreed to “maintain close coordination to resolve pending issues and revisit certain procedures in order to deliver fast and sure action towards achieving our timelines.”
The two sides, he added, also reviewed the progress of the Philippines’ railway projects that will be rolled out in cooperation with Japan, and committed to continue consultations to accelerate their implementation and address challenges involving such projects.
Feasibility studies for the Dalton Pass East Alignment Alternative Road Project, subject to certain requirements, and the Circumferential
Road 3 Project Missing Link Project will be completed later this year, according to him.
The Japanese officials also reaffirmed their country’s commitment to enhance assistance to Mindanao, and expressed willingness to provide additional aid for the rehabilitation and reconstruction of Marawi City.
“Today’s discussions were intensive and fruitful, as the previous meetings of this committee have been,” Dominguez said.
Discussions between the two sides also covered broad areas of Philippines-Japan sectoral cooperation, including regional development; information and communications technology; energy; environment; public safety; and disaster prevention.
Japan remains the top provider of official development assistance (ODA) loans totaling $6.13 billion, accounting for 47.51 percent of the total as of last year, based on the National Economic and Development Authority data.
The country was also the fifth largest provider of ODA grants amounting to $106.76 million — 4.45 percent of the total — as of December 2018.
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