2024.03.27
On March 26, the Japan International Cooperation Agency (JICA) signed two loan agreements with the Government of the Republic of the Philippines in the capital, Manila, amounting to a total of 250,000 million yen for the following two projects:
signing ceremony
Details of the projects are provided below.
The objective of the project is to improve transport capacity and efficiency in the Pan-Philippine Highway Network in Central and Northern part of Luzon by constructing an alternative road bypassing the existing Dalton Pass, thereby contributing to economic and social development of the Central and Northern Luzon. The project will be contributing to the achievement of SDGs Goal 9 (Industry, innovation and infrastructure).
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project, and advanced Japanese technologies (including NATM auxiliary construction , tunnel facilities, and deep foundation pile works) will be utilized for the mountain tunnel (the longest in the Philippines) and bridges being constructed under the project.
To address increasing transportation demand, this project will construct a subway line in the Metropolitan Manila area, thereby contributing to the alleviation of serious traffic congestion as well as to the mitigation of air pollution and the effects of climate change. In doing so, the project will contribute to the achievement of SDGs Goals 9 (Industry, innovation and infrastructure), 11 (Sustainable cities and communities), and 13 (Climate action).
| Project title | Amount (million yen) |
Annual interest rate (%) | Repayment period (years) |
Grace period (years) |
Procurement | |
|---|---|---|---|---|---|---|
| Project | Consulting services | |||||
| Dalton Pass East Alignment Road Project (I) | 100,000 | 0.30 | 0.20 | 40 | 10 | Japan tied |
| Metro Manila Subway Project (Phase 1) (III) | 150,000 | 0.30 | 0.20 | 40 | 10 | Japan tied |
*STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.
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