- 1. Japan Bank for International Cooperation (Governor: Hiroshi Yasuda) signed agreements to extend ODA loans totaling 39.457 billion yen to the Republic of the Philippines. The loan agreements were signed by Koichi Kosumi, Senior Executive Director of the JBIC, and Jose T. Pardo, Secretary, Department of Finance of the Philippines in Manila. The cumulative commitment of ODA loans to the Philippines to 1,783.93 billion yen for 239 projects.
- 2. The LRT Line 1 Capacity Expansion Project (Phase II), the Kamanava Area Flood Control and Drainage System Improvement Project, and the Mindanao Container Terminal Project covered by these loan agreements are being financed under the Special Yen (ODA) Loan scheme established in December 1998. This is the first application of the Special Yen (ODA) Loan scheme to the Philippines.
- 3. These projects will expand the railway system to improve the living environment of the capital region around Manila, improve flood control and drainage facilities, and upgrade a vital port facility in the island of Mindanao to promote regional development. These projects will accelerate the economic recovery of the Philippines by stimulating the economy and creating employment, and will also promote economic structural reform by improving the infrastructure for private investment and increasing productivity.
- 4. JBIC has long provided support for efforts toward sustainable growth in the Philippines, based on Japan's basic policy for Economic Cooperation to the Philippines which was compiled through the policy dialogue between Government of Japan and Government of the Philippines in March 1999. In December 1999, the JBIC prepared its Medium-Term Policy for Overseas Economic Cooperation Operations for the Philippines. JBIC explicitly established its basic objectives which are primarily to provide support for (1) strengthening the economic structure and overcoming factors which restrict the sustainable growth, (2) alleviating poverty and mitigation of regional disparities, (3) promoting environmental conservation and disaster mitigation, and (4) development of human resources and institution building. The current loan commitments are consistent with these objectives.
(See Appendix for details.)
Amounts, Terms and Conditions
* Special Yen (ODA) Loan project
** Special environmental project