The government, led by Finance Secretary Ralph G. Recto, secured on Monday significant financial backing from Japan for critical infrastructure projects and key health and climate change initiatives during a high-level meeting held in Manila. This financing, part of a broader bilateral partnership, was formalized through five major agreements signed with Japan’s official development agencies.
Secretary Recto expressed gratitude for Japan’s continued support, highlighting the macroeconomic significance of these investments, which are expected to enhance infrastructure and improve public services across the Philippines. “Japan’s trust in our government’s ability to deliver on these projects will drive real improvements for the Filipino people,” Recto stated.
The meeting, which was co-chaired by Secretary Recto and National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan, saw the signing of supplementary financing agreements for major infrastructure projects such as the Davao City Bypass and flood control initiatives in Metro Manila and Cavite. These projects, valued at a combined total of JPY 142.58 billion (approximately P40.64 billion), aim to boost mobility, mitigate flood risks, and spur regional economic growth.
Additionally, Japan agreed to provide program budget support for health and climate change programs. The JPY 35.0 billion (P13.35 billion) for the Climate Change Action Program and JPY 30.0 billion (P11.44 billion) for the Build Universal Health Care Program will strengthen the Philippine government’s capacity to address climate adaptation, disaster preparedness, and equitable health access.
The agreements underscore Japan’s ongoing commitment to supporting the Marcos administration’s Build Better More program, accelerating the rollout of key infrastructure projects such as the Metro Manila Subway and North-South Commuter Railways. Both governments also discussed enhancing cooperation in disaster risk reduction, regional development, and energy transition.
This partnership is seen as a key driver for the Philippines’ goal of achieving Upper Middle-Income status, positioning Japan as a pivotal partner in the country’s economic growth and resilience efforts.
Japan has proven a top source of concessional or below-market funding for the Philippines in the past. These sub-market funds are more known as official development assistance or ODA funds.
