Japan has proven as the country’s top source of sub-market funding, more known as official development assistance or ODA loan, according to the Organization for Economic Cooperation and Development or OECD.
As far back as 1966 up to 2023, Japan extended USD39.95 billion worth of ODA loans to the Philippines during the period, representing a little over 60 percent of aggregate ODAs. The United States as ODA source provided the next largest contribution with USD8.5 billion, or just under 13 percent of total.
The various multilateral organizations such as the World Bank/International Monetary Fund and the Asian Development Bank, among others, provided USD4.34 billion worth of concessional loans equal to 6.6 percent of total commitments while Australia extended USD2.68 billion or 4.1 percent of total.
Germany contributed USD2.31 billion or 3.5 percent of total ODAs. The government of South Korea extended USD2.41 billion (3.7 percent), France contributed USD1.85 billion (2.8 percent) while other concessional financing sources extended USD3.77 billion or 5.7 percent of the commitments.
According to the data, the funds came in the form of 314 loan agreements and 398 grants that directly benefited 79 provinces across the Philippines.
“As Japan’s Ambassador to the Philippines, I am proud to highlight nearly seven decades of steadfast partnership between our two nations. Since the 1960s, Japan has been committed to supporting the Philippines in key infrastructure projects such as the Philippine-Japan Friendship Highway, NAIA Terminal 2, and San Juanico Bridge, all of which have greatly enhanced connectivity and economic growth. Our ongoing initiatives, including the North-South Commuter Railway, Metro Manila Subway, and Davao City Bypass Construction, reflect our continued dedication to improving transportation, making it safer and more comfortable for the Filipino people,” Endo Kazuya, the Japanese Ambassador to the Philippines, said.
“Japan is also committed to disaster risk reduction, with significant efforts in flood control projects and humanitarian assistance during calamities like Typhoon Yolanda, Typhoon Odette, and the COVID-19 pandemic. We have also contributed to maritime safety by providing vessels to the Philippine Coast Guard to enhance their rescue, law enforcement, and operational capacity.
“Our support extends to the Bangsamoro region, where Japan continues to foster peace and sustainable development, ensuring that no one is left behind. Through human resource development programs like the Project for Human Resource Development Scholarship (JDS) and Knowledge Co-Creation Programs (KCCP), Japan empowers Filipino leaders to build a brighter future.
“In summary, Japan’s Official Development Assistance has positively impacted the Philippines by improving livelihoods, safety, and quality growth. We are deeply committed to continuing our strong partnership, working together to achieve even greater success in the years ahead. Let us continue to strengthen the bonds of friendship and cooperation between our nations,” the Japanese envoy said.
