Japan signs exchange of notes for disaster contingency fund and satellite data communication system
On Tuesday, Ambassador Koshikawa Kazuhiko signed the Exchange of Notes with Foreign Affairs Secretary Enrique Manalo to formalize a loan facility and a grant project under Japan’s Official Development Assistance (ODA): the Post Disaster Stand-by Loan Phase 3 (PDSL 3) and the Philippine Coast Guard (PCG) Satellite Data Communication System.
The PSDL 3 30-billion-yen loan seeks to support swift recovery in the aftermath of natural and health-related disasters, providing a quick-disbursing budgetary support for the Philippines’ calamity response programs. Under highly concessional terms, the loan’s repayment period is set to 30 years after a grace period of 10 years, with a fixed interest rate of 0.01 percent per annum.
The Japanese government started this budgetary support in 2013, helping Filipino families recover lost income and rebuild their lives from the devastating effects of Typhoon Yolanda. In 2020, Japan extended anew this financial support to augment government coffers as the Philippines rolled out its recovery efforts from the COVID-19 pandemic.
This 1.1-billion-yen grant aid seeks to procure a state-of-the-art Satellite Data Communication System for the Philippine Coast Guard (PCG). Once this project is completed, it is expected to improve Maritime Domain Awareness (MDA) and maritime law enforcement capabilities of the PCG, thereby contributing to the economic and social development of the Philippines, strengthening cooperation in the Sulu-Celebes Sea and its surrounding areas, as well as realizing the "Free and Open Indo-Pacific." Japan Information and Cultural Desk
