PH, Japan discuss key accomplishments of infrastructure development and economic cooperation in Tokyo
Finance Secretary Benjamin Diokno led the Philippine delegation during the 14th Philippines-Japan High-Level Joint Committee Meeting on Infrastructure Development and Economic Cooperation with Special Advisor to the Prime Minister of Japan Mori Masafumi on August 28 at the Meiji Kinenkan in Tokyo, Japan.
Prior to the meeting, the Philippine delegation paid a courtesy visit to Japanese Prime Minister Fumio Kishida at the Office of the Prime Minister to affirm the two countries’ strong bilateral ties.
“Through the years, the Philippines and Japan have enjoyed deep bilateral ties, strengthened by the Japanese Government’s steadfast commitment and continued support to the Philippines’ development agenda,” he said during his opening remarks.
The meeting allowed both countries to review the key accomplishments of its bilateral cooperation after the 13th Philippines-Japan High-Level Joint Committee Meeting in Manila last November 4, 2022.
Achievements in infrastructure development, regional development, agriculture, information and communications technology (ICT), energy and environment, maritime safety, disaster risk management, development in Mindanao, as well as the facilitation of Public-Private Partnership (PPP) opportunities between the Philippines and Japan were discussed during the meeting.
Following the meeting, Diokno and Japan International Cooperation Agency (JICA) Senior Vice President Nakazawa Keiichiro signed the loan agreement of the Post Disaster Stand-by Loan (PDSL) Phase 3, a 30 billion yen loan that seeks to support swift recovery after natural disasters by promoting policy actions on disaster risk reduction and management and strengthening disaster preparedness by providing quick-disbursing budget support.
Japan is the country’s largest Official Development Assistance (ODA) provider of loan and grant commitments, amounting to around $ 12.92 billion, or about 40.5 percent of the country’s total ODA portfolio.
JICA is supporting the implementation of 28 ongoing loans with the Philippine Government.
Diokno said that the Philippines will continue to secure concessional terms and conditions through JICA’s Special Terms for Economic Partnership (STEP), which increases the visibility of Japanese ODA in recipient countries through best use of advanced technologies and know-how of Japanese firms.
Diokno then thanked the Japanese government for financing key railway projects amounting to about 394.4 billion yen.
Among these are the North-South Commuter Railway Project (NSCR), NSCR Extension Project, and the Metro Rail Transit (MRT) Line 3 Rehabilitation Project.
The meeting also allowed the Japanese government to gather insights in terms of determining the assistance needs of the Philippines in pursuit of Upper Middle-Income Country (UMIC) status.
“We are grateful for Prime Minister Kishida’s commitment to support the Philippines’ pursuit of the upper middle-income country status through impactful ODA and private-sector investments,” Secretary Diokno said.
Both countries then discussed available financing options once the Philippines enters UMIC status by 2025. These include new frameworks such as the "private capital mobilization-type" grant that attracts investment and the "offer-type" that proposes a menu of cooperation that takes advantage of Japan's strengths.
As a sign of confidence, the Government of Japan renewed its commitment to the development cooperation with the Philippines, building on the strong economic, political, and cultural ties throughout the years.
“We hope that Japan will continue to be a strong partner through various forms of bilateral and technical cooperation for many years to come,” Diokno said. DOF Communications Group
