By Argyll Cyrus Geducos
Tokyo — Japan has pledged a total of over US$1 billion for three infrastructure projects in the Philippines by exchanging notes on the provision of a yen loan Monday night.
According to the Ministry of Foreign Affairs (MOFA) in Japan, one of the three projects is the Cavite Industrial Area Flood Risk Management Project with a loan provision of up to Y15.928 billion or roughly P7.3 billion.
This was witnessed by President Duterte and Japanese Prime Minister Shinzo Abe before their Joint Press Statement in Tokyo last night.
The said project aims to reduce flood damage in Cavite by implementing measures to counter flooding in the province.
It is also expected to help overcome vulnerability and contribute to sustainable economic growth in the Philippines.
The loan has an interest rate of 0.3 percent per annum, while rate of interest of the consulting services will be 0.01 percent per annum. It is payable for 30 years after the 10-year grace period.
Abe has also pledged the provision of a yen loan of up to Y104.53, or roughly P47.6 billion, for the Metro Manila Subway Project (Phase 1).
According to the MOFA, this project would contribute to relieving serious traffic congestion in Metro Manila by seeking to meet growing transportation demand.
It would also ease atmospheric pollution and climate change through the development of a subway in Metro Manila. The implementation of this project is expected to contribute to sustainable growth by promoting investment in the Philippines.
The subway project yen loan has an interest rate of 0.1 percent per annum (0.01 percent per annum for consulting services), and is payable for 28 years after a grace period of 12 years.
Abe also pledged a yen loan of up to Y9.399 billion, or up to P4.3 billion, for the Arterial Road Bypass Project (Phase III) in Plaridel, Bulacan.
According to the MOFA, the project would contribute to relieving traffic congestion and improving transportation capacity and efficiency in Plaridel City by constructing a bypass road along the Philippine-Japan Friendship Highway.
The Philippine-Japan Friendship Highway is an important general arterial highway that directly connects Metro Manila with Central Luzon, in the vicinity of the city.
The Road Bypass Project yen loan has an interest rate of 1.5 percent per annum (0.01 percent per annum for consulting services), and is payable for 20 years after the 10-year grace period.
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