DOF set to execute around $1.5b worth of projects with JICA for 2024-2025, to facilitate signing of four major loan agreements within the year
The Department of Finance (DOF) is set to execute around $1.5 billion-worth of pipeline projects with the Japan International Cooperation Agency (JICA) for 2024-2025, and is working towards executing four major loan agreements within the year.
The development was discussed during a meeting between Finance Undersecretary for the International Finance Group (IFG) Joven Balbosa and JICA’s Director General of Southeast-Asia and Pacific Department Hayakawa Yuho on April 18, 2024 at the JICA Office in Washington, D.C.
During the meeting, Balbosa reaffirmed the strong partnership between the Philippine Government and JICA, acknowledging Japan as the country’s largest official development assistance (ODA) partner with $12.30 billion net commitments (loans and grants) or 32.82 percent share of total ODA as of December 2023.
Further building on this partnership, the DOF and JICA have discussed executing a pipelined commitment of around 227.6 billion yen (around $1.5 billion) from April 1, 2024 to March 31, 2025, as well as an annual average pipeline of about 249.2 billion yen (roughly $1.6 billion) over the next five years from 2023 to 2027.
The DOF and JICA also discussed the timeline and preparations required to facilitate the signing of the loan agreements for projects on maritime safety, roads, and flood risk management, which are targeted before the end of the year.
Aside from the usual portfolio of infrastructure projects funded by JICA, the agency shared that it is expanding into other sectors that are in line with the Marcos, Jr. administration’s development objectives, such as agriculture, education, and health.
The JICA likewise expressed its openness to scale up its policy-based lending, with an intent to co-finance the Climate Change Action Program (CCAP), Subprogram 2 with the Asian Development Bank (ADB) and Agence Francaise de Developpement (AFD).
The CCAP will support the Philippines in implementing its national climate policies, including its Nationally Determined Contribution (NDC). The program will intensify efforts to transform key sectors toward a climate-resilient and low-carbon economy.
Moreover, both parties engaged in an in-depth discussion on project implementation issues, to which they committed to maintaining open dialogue and addressing any delay to improve overall project management and minimize costs to the government.
The DOF also sought JICA’s assistance in bringing in more private sector financing to support the administration’s development goals as the Philippines transitions to an upper-middle income country (UMIC) status, which would mean it would gradually move away from concessional financing. Department of Finance
