PH, Japan Sign Five Loan Deals Worth PHP65-B For Infrastructure, Climate, And Health Programs

The Philippine government has secured a total of PHP65 billion in financing from Japan for major infrastructure projects, as well as program budget support for health and climate change initiatives.

The Japanese delegation was led by Dr. Mori Masafumi, Special Advisor to the Japanese Prime Minister. Department of Finance (DOF) Secretary Ralph G. Recto headed the Philippine delegation, alongside his co-chair, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan. I Photo: Department of Finance Facebook

The loan agreements were approved during the 15th Philippines-Japan High-Level Joint Committee Meeting (HLJCM) on Infrastructure Development and Economic Cooperation, held in Manila on March 24, 2025, to accelerate the rollout of Japan-supported projects in the country.

The Japanese delegation was led by Dr. Mori Masafumi, Special Advisor to the Japanese Prime Minister. Department of Finance (DOF) Secretary Ralph G. Recto headed the Philippine delegation, alongside his co-chair, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan.

According to the DOF, key highlights of the meeting included the signing of supplemental financing agreements for a bypass road project in Mindanao and two major flood control projects in Luzon.

The department noted that the Davao City Bypass Construction Project (III), with financing worth JPY46.34 billion (about PHP17.67 billion), will enhance mobility for Davaoeños, facilitate trade, and accelerate economic growth in Mindanao through the construction of a four-lane bypass road with a total length of 45.5 kilometers.

Meanwhile, financing worth JPY45.76 billion (about PHP17.45 billion) for the Pasig-Marikina River Channel Improvement Project, Phase IV (II), will help strengthen flood management infrastructure in Metro Manila through the establishment of dikes and revetments, installation of floodgates, and channel dredging, among other measures.

The Cavite Industrial Area Flood Risk Management Project (II) also received financing worth JPY14.48 billion (about PHP5.52 billion) to mitigate flood damage in the lower reach of the San Juan River Basin and its adjacent Maalimango Creek Drainage Area.

Additionally, two program budget-support financing agreements were signed to assist the Philippines in advancing health and climate change initiatives.

The Climate Change Action Program, Subprogram 2, with financing worth JPY35.0 billion (about PHP13.35 billion), will equip the government with financial resources to implement more climate adaptation, mitigation, and disaster preparedness initiatives.

Meanwhile, JPY30.0 billion (about PHP11.44 billion) in financing for the Build Universal Health Care, Subprogram 2, will help improve equitable access to quality health services, addressing gender-specific health concerns and the health impacts of climate change.

The five financing agreements were signed by Secretary Recto and Japan International Cooperation Agency (JICA) Country Chief Representative Baba Takashi. During the high-level meeting, both parties discussed the status, implementation challenges, and strategies to fast-track the rollout of major Japan-funded projects.

These projects include the Metro Manila Subway Project (Phase I), the North-South Commuter Railway Projects, the Metro Rail Transit Line 3 Rehabilitation Project, the Dalton Pass East Alignment Road Project, and the Metro Manila Priority Bridges Seismic Improvement Project.

Japan is also in talks with the Philippines to support additional projects such as the Central Mindanao High Standard Highway, the Second San Juanico Bridge Construction Project, the Flood Control and Drainage Project in Davao City, the Parañaque Spillway Project, the National Public Broadcasting Digital Terrestrial Broadcasting Network Development Project, and the Magat Dam Reconstruction Project, among others.

Discussions also covered updates on the Mindanao peace process and progress in sectoral cooperation on disaster risk reduction, maritime safety, regional development, information and communications technology (ICT), and energy transition.

The Philippine government also presented prospects for future infrastructure development, with a focus on integrating Public-Private Partnership (PPP) models and leveraging Official Development Assistance (ODA) financing as the country progresses toward Upper Middle-Income status.

Recto stated, “We are deeply grateful to the government of Japan for its confidence in our ability to turn these projects into realities. On the part of the Philippine government, we will honor this trust by ensuring that every peso, every yen, and every commitment made today translates into real improvements for the people we serve.”

“Indeed, Japan is not just a friend in words but in action. And today is just one of the many proofs that our friendship is growing stronger each day through concrete efforts,” he added.

The Philippine delegation also included Department of Budget and Management (DBM) Secretary Amenah Pangandaman, Department of Transportation (DOTr) Secretary Vivencio Dizon, Department of Public Works and Highways (DPWH) Secretary Manuel Bonoan, Department of Energy (DOE) Secretary Raphael Perpetuo M. Lotilla, and Philippine Ambassador to Japan Mylene J. Garcia-Albano.

Senior officials from the Department of Information and Communications Technology (DICT), the Presidential Communications Office (PCO), the Bases Conversion and Development Authority (BCDA), the Mindanao Development Authority (MinDA), the Office of the Presidential Adviser on Peace, Reconciliation, and Unity (OPAPRU), and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) were also present.

The Japanese delegation comprised high-level officials from the Cabinet Secretariat, the Ministry of Foreign Affairs (MOFA), the Ministry of Internal Affairs and Communications (MIC), the Ministry of Finance (MOF), the Ministry of Economy, Trade and Industry (METI), the Agency for Natural Resources and Energy (ANRE), and the Ministry of Land, Infrastructure, and Tourism (MLIT).

Also in attendance were high-level officials from JICA, the Japan Bank for International Cooperation (JBIC), the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), the Embassy of Japan (EOJ), and JICA Philippines.