Philippines, Japan discuss progress of ‘Build’ projects, Mindanao peace process

February 22, 2019

OSAKA--Philippine and Japanese officials have discussed  ways to further expand their cooperation and address “implementation bottlenecks” in the Duterte administration’s “Build, Build, Build” infrastructure projects and in supporting peace-building initiatives in Mindanao following the recent ratification of the organic law establishing a new Bangsamoro region in the South.

During the 7th meeting of the Japan-Philippines Joint Committee on Infrastructure Development and Economic Cooperation held here on Thursday, Japan announced that on top of its $202 million loan for the Road Network Development Project in Conflict-Affected Areas in Mindanao, it is also extending a  3.2 billion yen grant assistance for peace and development projects in Mindanao, which consists of the following:

1) 1.8 billion yen for the construction of Technical Education and Skills Development Authority (TESDA) training centers in the damaged city of Marawi, and the provinces of Basilan and Sultan Kudarat under the Programme for the Urgent Improvement of Socioeconomic Infrastructure in the Bangsamoro Region;

2) 560 million yen for the provision of well-drilling machines and underground water detecting machines under the Economic and Social Development Programme;

3) 200 million yen for the provision of livelihood assistance in agriculture and for fishers through the Food and Agriculture Organization (FAO);

4) 300 million yen for the development of water facilities in the Bangsamoro region through the International Labor Organization (ILO); and

5) 340 million yen for the provision of vehicles and equipment through the United Nations Development Programme (UNDP).

After the meeting, Philippine Ambassador to Japan Jose Laurel and Japanese Ambassador to the Philippines Koji Haneda also signed the Exchange of Notes for the 1.2 billion yen grant assistance for train simulators of the proposed Philippine Railway Institute, which will help hone the skills of workers who will man the country’s extensive rail system that will be constructed as part of the Duterte administration’s “Build, Build, Build” program.

They also signed the Exchange of Notes for the  1.8 billion yen grant and the 560 million yen grant, along with a Memorandum of Cooperation in the fields of Healthcare, which aims to establish a mechanism for future cooperation between the Philippines and Japan on, among others, universal health coverage, elderly care, disease prevention, maternal and child health services and sanitation.

Leading the Philippine delegation at the joint committee meeting was Finance Secretary Carlos Dominguez III, while Dr. Hiroto Izumi, Special Advisor to Prime Minister Shinzō Abe, led the Japanese side.

“Our regular meetings have proven fruitful as seen in our ever-improving efficient channels and long list of accomplishments,” Dominguez said in his opening remarks. “I am convinced that through our regular meetings, both our governments are prompted to deliver on our commitments, and are encouraged to think of more innovative measures to improve our cooperation and facilitate project implementation.”

Dr. Izumi, for his part, expressed the hope that the achievements of the joint committee would further enhance the close bilateral relations between the Philippines and Japan.

"Our two countries have entered a golden age of our strategic partnership. In addition to government-to-government relationships, I hope the relationship between our private sectors would also be good," Dr. Izumi said.

During the meeting, the Japanese side also congratulated the Philippines on the success of the plebiscite for, and ratification of the Bangsamoro Organic Law, and the establishment of the Bangsamoro Transition Authority (BTA).

"Japan is ready to send our support to the progress made in the peace process," Dr. Izumi said. "At the same time, I would like to express my heartfelt sympathy to the victims who were killed or injured by the recent terror attacks that occurred somewhere in Mindanao."

On behalf of the Philippine government, Dominguez thanked Japan for the assistance it has been extending to Mindanao, especially to the soon-to-be formed Bangsamoro region and the devastated city of Marawi.

Both Japan and the Philippines said they will  coordinate with the BTA to ensure the timely signing of a grant agreement for the Sector Grant for the Urgent Improvement of Socioeconomic Infrastructure in the Bangsamoro Region as well as the agent agreement to provide underground water detection and well-drilling machines under the Japan-Philippines Economic and Social Development Programme.

The Philippine delegation at the meeting also included Secretaries Ernesto Pernia of the National Economic and Development Authority (NEDA), Benjamin Diokno of the Department of Budget and Management (DBM), Mark Villar of the Department of Public Works and Highways (DPWH), Alfonso Cusi of the Department of Energy (DOE), and Eduardo del Rosario of the Housing and Urban Development Coordinating Council (HUDCC); Vivencio Dizon, president and CEO of the Bases Conversion and Development Authority (BCDA); and Philippine Ambassador to Japan Jose Laurel, along with other officials.

Aside from Dr. Izumi, the other officials of the Japanese government present at the meeting included Shigeru Kiyama, Special Adviser to the Cabinet, and Japanese Ambassador to the Philippines Koji Haneda.

The two sides also noted the “remarkable progress” made since their last meeting in Manila in November last year, as shown by the signing of the Exchange of Notes for the Road Network Development Project in Conflict Affected Areas in Mindanao, and the loan agreements for the North-South Commuter Railway Extension Project (I); and Pasig-Marikina River Channel Improvement Project (Phase Ⅳ).

Dominguez said that in line with the “fast and sure” approach adopted by the two countries, the loan accords for North-South Commuter Railway Extension Project (I) and Pasig-Marikina River Channel Improvement Project (Phase Ⅳ) were signed on Jan. 21, two months after the exchange of notes, which is “truly a remarkable breakthrough in our cooperation as this broke the previous record for the fastest processing time of three months last year.”

Five other loan agreements were signed between the Philippines and Japan for the Duterte administration’s big-ticket “Build, Build, Build” projects.

For the Road Network Development Project in Conflict Affected Areas in Mindanao, Japan said “it has finished the necessary procedures to sign the loan agreement (for the project) and is expecting to do so at the earliest possible time once the Philippine side secures the necessary government approvals.”

On the first phase of the Metro Manila Subway project, both sides welcomed the signing of a contract this month between Department of Transportation (DOTr) and a group of Japanese companies for civil works of the section covered by the partial opening of this transport system, and the start of the engineering design of the NAIA extension of the project.

The two sides also discussed the feasibility studies for the Circumferential Road 3 Missing Link Project in Metro Manila, and the Dalton Pass East Alignment Alternative Road Project, subject to the certification of the National Commission on Indigenous Peoples (NCIP), which they expect to both resume in the first half of this year.

They also acknowledged the Philippine projects with support from Official Development Assistance (ODA) extended by Japan that were delivered since the beginning of the administration of President Duterte, “as an achievement of the steadfast cooperation between Japanese and the Philippine Governments through this Committee.”

The Japanese side “conveyed its intention to consider a possible supplemental loan,” as requested by the Philippine government, for the Davao City Bypass Construction Project under the Special Terms forEconomic Partnership (STEP) facility, subject to certain conditions.

Both sides discussed developments on the following areas of Japan-Philippines sectoral cooperation: a) Regional Development; b) Information and Communications Technology; c) Energy; d) Agriculture; e) Environment; f) Public Safety (anti-illegal drug measures, maritime safety); g) Disaster Prevention; and h) Healthcare. These included discussions on Japan's proposed Liquefied Natural Gas (LNG) Receiving Terminal project in the Philippines and the construction of waste-to-energy facilities in Davao City.

The two sides also agreed to start discussions on their joint strategy for future cooperation in anticipation of the Philippines’ coming elevated status and classification as an upper middle income country. DMS