JBIC Extends Special Yen (ODA) Loan of 34,723 million yen to the Philippines - To improve the local airport, seaport and roads -
1. Japan Bank for International Cooperation (Governor: Hiroshi Yasuda) decided to extend three ODA loans totaling up to 34,723 million yen to the Republic of the Philippines, and signed the loan agreements at the JBIC's Head Office today. The cumulative commitment of ODA loans made by JBIC to the Philippines amounts to 1,818,626 million yen for 242 projects.
2. The loan agreements are designed to finance the New Iloilo Airport Development Project, Subic Bay Port Development Project, and the Second Magsaysay Bridge and Butuan City Bypass Road Construction Project, under the Special Yen (ODA) Loan scheme established in December 1998. This is the second application of the Special Yen (ODA) Loan scheme to the Philippines, following the commitment signed in April of this year (totaling 39,457 million yen for three projects).
3.The objective of the "New Iloilo Airport Development Project" is to improve the major airport in Panay Island located in the central part of the Philippines. This is in response to the growing demand for air traffic, whereas, the "Subic Bay Port Development Project" aims at boosting distribution efficiency and alleviating traffic congestion at the Manila Port by improving the Subic Bay Port in the central Luzon area. "The Second Magsaysay Bridge and Butuan City Bypass Road Construction Project"will involve construction of a bridge and a bypass road to improve transportation efficiency in the northeastern area of Mindanao Island. The objective of all three projects is to contribute to the regional economic and social development in the Philippines.
4. In December 1999, JBIC prepared "Medium-Term Policy for Overseas Economic Cooperation Operations for the Philippines"which includes the following priority areas: (1) Strengthening the economy and removing obstructions to sustainable growth; (2) Reducing poverty and correcting regional disparities; (3) Providing environmental conservation assistance including disaster management; and (4) Developing human resources and the fostering of development of institutions. The current loan commitments are in line with these objectives.