P5-B in ODA signed for RP’s post-typhoons infra rehab program

April 26, 2010 8:14 pm 

By Gloria Jane Baylon

MANILA, April 26 — The Japanese government this year became the first major contributor to the Philippines’ short-term infrastructure rehabilitation related to last year’s mega-typhoons, after an Exchange of Notes and related documents for Yen 9.912 billion (about P5 billion)) were signed today between Foreign Affairs Secretary Alberto G. Romulo and Japanese Ambassador to the Philippines Makoto Katsura.

The Japanese Embassy revealed the interest rate of the yen-loan is 0.01 percent per annum with a 40-year repayment period and a 10-year grace period, providing “the most concessional terms among various funding sources.”

The project will be implemented by the Department of Public Works and Highways (DPWH).

Katsura said this is twice as much as what was granted during Japan's previous fiscal year for such rehabilitation program.

The yen loan package for the post-Ondoy and -Pepeng projects were signed at the Department of Foreign Affairs (DFA), witnessed by officials of the Department of Finance (DOF), the National Economic and Development Authority (NEDA), the DPWH, the Special National Public Reconstruction Commission, the Japan International Cooperation Agency (JICA), and the Embassy of Japan.

Romulo said he welcomed the latest Japanese assistance package.

“This Japanese assistance package will provide much-needed funds for rehabilitating our physical structures and assets and improving their carrying and load capacity, thereby hopefully mitigating the impact of future disasters,” he said.

“More importantly, this vital package helps us lay the foundations for our climate-proofing efforts. This is a vital task, given that typhoons and extreme weather events can only be expected to increase in intensity and frequency as a result of climate change,” Romulo added.

Katsura said in remarks after the signing ceremony that the project “contributes to counter-measures against intensifying natural disasters in developing countries vulnerable to the adverse impacts of climate change." It is carried out under the so-called “Hatoyama Initiative.”

The loans, said Katsura, will be for carrying out repairs and reinforcement of damaged overpass bridges as well as flood control facilities that were destroyed or eroded, particularly in Luzon, Mindoro and Palawan Islands, by the typhoons.

"This project will certainly assist the Philippines’ nation-building efforts and enhance further the strategic partnership between the two countries," said Katsura.

Typhoons Ondoy and Pepeng hit the country in September and October 2009, causing at least 1,000 deaths and severe damages to property and livelihood, and injuring and displacing tens of thousands of people. (PNA)

scs/GJB

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One Response to “P5-B in ODA signed for RP’s post-typhoons infra rehab program”

  1. P5-B in ODA signed for RP's post-typhoons infra rehab program …- Typhoon Pepeng on April 27th, 2010 3:59 pm

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