By Eileen Mencias
The Philippines is finding it increasingly difficult to secure concessional loans from development partners that offer lower interest rates and longer repayment periods, according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.
Despite this, the country recently signed new loan agreements with the Japanese government for five projects during the 15th Meeting of the Philippines-Japan High-Level Joint Committee on Infrastructure Development and Economic Cooperation. However, NEDA did not disclose the total loan amounts involved.
“Our discussions also underscored the importance of innovative financing solutions. With concessional loans becoming less accessible, we recognize that Public-Private Partnerships (PPPs) will play a greater role in infrastructure development,” Balisacan said.
NEDA identified the projects covered by the agreements as the Davao City Bypass Construction Project, Phase IV of the Pasig-Marikina River Channel Improvement Project, the Cavite Industrial Area Flood Risk Management Project, Climate Change Action Program Subprogram 2, and the Build Universal Healthcare Program Subprogram 2.
According to the Department of Budget and Management’s Budget of Expenditures and Sources of Financing (BESF), the government sought a P564.35 million loan from the Japan International Cooperation Agency (JICA) this year for the Davao City Bypass Construction Project.
Launched in 2016, the project is scheduled for completion in 2027, with a total cost of P14.23 billion. The BESF also lists an additional P1 billion loan related to the project.
For Phase IV of the Pasig-Marikina River Channel Improvement Project, the government outlined plans in the 2025 BESF to secure a P2.8-billion loan from JICA this year. The flood control project, which started in 2019, is expected to be completed by 2028 at a total cost of P51.19 billion.
Meanwhile, the proposed JICA loan for the Cavite Industrial Area Flood Risk Management Project amounts to P657.29 million. Initiated in 2018, the project is slated for completion in 2027 with a total cost of P21.96 billion.
The 2025 BESF, however, does not include the Climate Change Action Program Subprogram 2 and the Build Universal Healthcare Program Subprogram 2 among the projects earmarked for JICA funding.
During the meeting, Philippine and Japanese officials also reviewed the progress of Japan-backed infrastructure projects currently in the pipeline. These include the Parañaque Spillway Construction Project, the Philippine Coast Guard Support Facility, the National Digital Terrestrial Television Broadcasting Network Project, and the Second San Juanico Bridge Construction Project, according to NEDA.
“Today’s discussions reaffirmed our shared commitment toward ensuring the successful implementation of key infrastructure projects and addressing challenges in project execution. We have taken stock of our accomplishments, exchanged updates on critical initiatives, and explored new avenues for cooperation,” Balisacan said.
