MANILA – The Philippines and Japan sealed two loan agreements worth P75.5 billion (around 154 billion yen) for two major infrastructure projects in Visayas and Mindanao.
The loan will help foot the bill as the government pushes through with its “Build, Build, Build” to recover the ailing economy brought upon by the coronavirus pandemic.
The first loan, amounting to P57 billion will be used to finance the construction of the Cebu-Mactan Forth Bridge and coastal road project in the Visayas while the remaining P18.5 billion will help support the funding for the Davao City Bypass Construction Project that initially secured P9.27 billion from a loan in 2015.
Finance Secretary Carlos G. Dominguez III and Japan International Cooperation Agency (JICA) Chief Representative Eigo Azukizawa were present to sign the deal.
Dominguez said that the interest for the loan would be at 0.10% annual interest for non-consulting services and 0.01% for consulting services payable in 40 years with 12 years grace period.
Japan International Cooperation Agency (JICA) will be funding 75% of the total cost of the project while the remaining 25% or P18.82 billion will be under local financing.
The construction is expected to start this year and will be operational by the year 2023.
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