DOF, JICA sign 15.93-B yen loan accord for Cavite flood control project

November 15, 2017

The Department of Finance (DOF) and the Japan International Coordination Agency (JICA) sealed  last  Monday  a 15.93 billion yen loan agreement for a project that aims to control flooding in several areas in Cavite that host economic zones and residential communities.

The Cavite Industrial Area Flood Risk Management Project, which will be implemented by the Department of Public Works and Highways (DPWH), stands to benefit some 8,000 households as well as manufacturing plants in the cities of General Trias and Imus and the municipalities of Kawit, Noveleta and Rosario in Cavite.

The accord on this Japanese loan, equivalent to approximately $142 million, was signed by Finance Secretary Carlos Dominguez III and JICA Chief Representative to the Philippines Susumu Ito in the presence of President Rodrigo Duterte and Japan Prime Minister Shinzo Abe in Malacanang.

According to the DOF in a statement Wednesday, the Cavite flood management project was among the big-ticket infrastructure flagship projects approved in June by the Investment Coordination Committee-Cabinet Committee and the National Economic and Development Authority (NEDA) Board chaired by Duterte.

This Cavite project was recommended for official development assistance (ODA) funding from Japan by the DOF last July 18 and received an official pledge from the Japanese government on August 8, the DOF’s International Finance Group (IFG) said.

It involves the construction of flood protection measures in the San Juan River and Maalimango Creek Drainage Area of Imus.

The JICA loan agreement was among the four accords inked between the Philippines and Japan during Prime Minister Abe’s visit to Manila for the 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Meetings.

Manila and Tokyo also signed the exchange of notes for the 104.5 billion yen loan (about $929.1 million) for the Metro Manila Subway Project (Phase 1) of  the Department of Transportation (DOTr); the 9.399 billion yen  loan (about $89 million) for the Arterial Road Bypass Project (Phase III) of DPWH in Plaridel, Bulacan;  and the 2.5  billion yen (about $22.2 million) grant for the Non-Project Grant Aid for the  Economic and Social Development Programme, which will benefit the Philippine Coast Guard’s anti-terrorism efforts  and DPWH’s quick rehabilitation program for Marawi City.

These agreements were signed by Foreign Affairs Secretary Alan Peter Cayetano and Japanese Ambassador Koji Haneda, also in Malacanang with Duterte and Abe witnessing the event.

Abe arrived in the Philippines on Nov. 12 and was among 20 other world leaders who flew into the Philippines for the two-day ASEAN gathering.

Under Abe’s leadership, Japan has committed to provide about  one trillion yen (about $8.8 billion) in ODA and investments to the Philippines over the next five years.

Abe was the first head of government to visit the Philippines under the term of  Duterte in January. Duterte, in turn, has visited Japan twice—in October 2016 and just last month. DMS