Japan Remains PH Top Development Partner
2025.08.08
Japan retains its spot as the Philippines' largest source of Official Development Assistance (ODA) in 2024, contributing USD 13.23 billion, or about a third of the country's total ODA portfolio. This is based on the 2024 ODA Portfolio Review released by the Department of Economy, Planning, and Development (DEPDev), underscoring the enduring partnership and shared commitment of both countries to advance inclusive, sustainable development.
The strong cooperation between Japan and the Philippines have had a strong partnership in development, spanning over seven decades, much of which is implemented through the Japan International Cooperation Agency (JICA), the official ODA executing agency of the Government of Japan.
In 2024, Japan supported 82 active loans and grants covering various sectors such as transport infrastructure, governance, disaster risk reduction, and regional peacebuilding -- all aligned with JICA's priority areas in the Philippines: sustainable economic growth, human security for inclusive development, and peace and development in Mindanao.
JICA also leads in financing the country's Infrastructure Flagship Projects (IFPs), accounting for 47.68% of total ODA for IFPs. These major undertakings are not only strategic in scope but, more importantly, make life measurably better for Filipino communities.
- Metro Manila Subway Project: Once operational, this project will slash travel time from Quezon City to the airport from over an hour to just 40 minutes, helping daily commuters spend less time in traffic and more time with their families. It is also expected to reduce air pollution, greenhouse gases, and transport costs for low-income workers.
- North-South Commuter Railway (NSCR) System: Stretching from Clark to Laguna, the NSCR will benefit about 800,000 commuters daily. For small business owners and informal vendors, the improved mobility will mean faster access to markets and lower logistics expenses.
- Davao City Bypass: In Mindanao, the bypass will significantly reduce travel time for farmers and agricultural traders transporting produce to Davao City, thereby cutting spoilage, and boosting incomes in rural communities.
- Road Network Development in Conflict-Affected Areas in Mindanao: In provinces long affected by armed conflict, road access means more than transport. It means reaching schools, hospitals, and livelihood opportunities with improved ease. These roads will reconnect isolated barangays to municipal centers and trade routes.
These large-scale transport projects are part of a broader push to address persistent mobility and regional development challenges in the country.
Speaking at the launch of the 2024 ODA Portfolio Review Report in July 2025, DEPDev Secretary Arsenio Balisacan emphasized that investments like the North-South Commuter Railway and the Metro Manila Subway are essential to easing congestion, improving logistics, and promoting more inclusive and regionally balanced growth.
Beyond transport infrastructure, Japan's support extends to everyday challenges faced by Filipino families. JICA has helped local governments install flood forecasting system to reduce the impact of typhoons, improve access to quality health services, provided maritime vessels to protect fishing livelihoods, and conducted skills training to help young people in underserved areas access better employment opportunities.
From commuters navigating Metro Manila's traffic to farmers in Mindanao bringing produce to market, Japan's development assistance, channeled through JICA, has real, everyday impact. Grounded in mutual trust and shared goals, the partnership between the Philippines and JICA continues to gain momentum towards an inclusive and sustainable future where no one is left behind.
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