Japan extends $100-M loan for PPP, job programs

MANILA, Philippines – The government of Japan extended a US$100-million loan to support the Philippines’ Public-Private Partnership (PPP) and employment programs.

The loan agreement, signed on the sidelines of the World Bank-International Monetary Fund Annual Meeting in Tokyo, Japan last week, will support the implementation of the Development Policy Support Program-Investment Climate Program (DPSP-ICP) to promote competitiveness and inclusive growth.

In a statement, the Department of Finance said the project aims to help the Philippines strengthen domestic policy on the following:

• employment facilitation;
• competitiveness improvement; and 
• creation of an enabling environment for PPP infrastructure.

The program loan carries with it an annual interest rate of 1.4% and a repayment period of 30 years. The repayment period includes a 10-year grace period.

Proceeds of the loan will boost funds from a $350-million loan extended by the Asian Development Bank to the Philippines for the same purposes.

Japan, through the Japan International Cooperation Agency (JICA), has been the Philippines’ main source of official development assistance.

JICA presently supports the loan and grant aid financing totaling to about JPY250 billion primarily in the sectors of agriculture and agrarian reform, infrastructure, flood control, environment, climate change, Mindanao peace process, disaster risk reduction and management, and human resource development. – Rappler.com