(Eagle News) — Japan continued to help the Philippines amid the virus pandemic, as the Philippines and Japan signed two loan agreements worth a combined P75.5 billion (about 154 billion yen) for two big-ticket projects in the Visayas and Mindanao under the “Build, Build, Build” infrastructure program.
The loan agreements were signed on Tuesday, June 16, as the approval of the loans for the two projects were fast-tracked through high-level consultations between the Philippines and Japan, according to the Department of Finance.
Finance Secretary Carlos Dominguez III and Japan International Cooperation Agency (JICA) Chief Representative Eigo Azukizawa signed the agreements for the P57 billion (JPY119 billion) loan to support the construction of the Cebu-Mactan Fourth Bridge and the Coastal Road Construction project in the Visayas and the supplemental financing of P18.5 billion (JPY35 billion) for the Davao City Bypass Construction Project.
The DOF said that this was part of the Duterte administration’s plans to ramp up its infrastructure investments so the country can recover quickly from the coronavirus-induced global economic crisis.
JICA Chief Representative Azukizawa pointed out that the loan agreements were signed even amid the global crisis triggered by the coronavirus disease 2019 (COVID-19) pandemic.
“In a broader sense, I hope that these projects will also contribute to the economic recovery of the country amidst the COVID-19 pandemic as we fully support your government’s pronouncement that restarting and accelerating the ‘Build, Build, Build’ program should be one of many strategies for reviving the Philippine economy,” Mr. Azukizawa said.
Also at the signing ceremony were Japanese Ambassador to the Philippines Koji Haneda and Public Works Secretary Mark Villar.
The DOF thanked the Japanese people and the Japanese government for the help they have extended to the country amid the pandemic difficulties.
“We express our heartfelt gratitude to the people and the Government of Japan, represented today by the officials of JICA and of course, by His Excellency, the Ambassador of Japan to the Philippines, for their generosity and earnestness in supporting our infrastructure modernization program. Given the challenging circumstances, these projects bring more support to our economic recovery well beyond their nominal value,” Secretary Dominguez said after the signing of the loan agreements held at the DOF office in Manila.
He said the bridge and bypass road projects are expected to revitalize the economy and create more jobs in the Visayas and Mindanao as the country firms up its recovery starting next year from the COVID-19 pandemic.
-Cebu-Mactan Fourth Bridge, Coastal Road Construction –
“The Cebu-Mactan Fourth Bridge and the Coastal Road Construction project is the biggest infrastructure project in the Visayas under the “Build, Build, Build” program with a total estimated cost of P76.4 billion (about US$1.59 billion or JPY168.96 billion),” a DOF statement said.
JICA has committed to fund 75 percent of the total cost of the project through Official Development Assistance (ODA) financing, while the remaining 25 percent or P18.82 billion (about US$442.76 million or JPY49.73 billion) will be covered by local financing, it said.
The DOF said that this project will improve the capacity of the existing road network connecting mainland Cebu and Mactan Island, to facilitate the faster movement of trade and people between the two areas.
On top of the loan, JICA will also finance the detailed engineering design for the project, which is expected to start groundwork in 2021 and be completed in 2029.
-Reducing congestion in Davao City-
“The Davao City Bypass Construction project, meanwhile, is expected to reduce congestion in Davao City and improve accessibility to its major development hubs through the construction of a 45.5-km, four-lane bypass road,” the DOF said.
It also includes a 2.3-km main tunnel, which will utilize advanced Japanese technologies for its construction, and 0.5-km 4-lane cut-and-cover tunnel section running through the mountainous terrain in Barangay Magtuod, Davao City.
Stretching from the Davao-Digos intersection of the Pan Philippine Highway at Toril, Davao City to the Davao-Agusan National Highway in Panabo City, the project is expected to reduce travel time between the two points from the current one hour and 44 minutes–using the existing Maharlika Highway–to only 49 minutes.
It will start construction this year and is expected to be operational by 2023, the DOF said.
(Eagle News Service)