The Japanese government, through the Japan International Cooperation Agency (Jica), is extending P9.75 billion worth of so-called official development assistance, or borrower-friendly loans, to the Philippines.
The loans will support disaster risk-reduction and management programs through the implementation of a flood-control project in the Cagayan de Oro River in Northern Mindanao, as well as help alleviate traffic congestion in Metro Manila.
Jica is extending P5.788 billion for the Flood-Risk Management Project for the Cagayan de Oro River Basin and another P3.96 billion to implement the Metro Manila Interchange Project (Phase VI). Both projects will be undertaken by the Department of Public Works and Highways (DPWH).
“To help Metro Manila sustain growth, and develop it as an attractive investment destination, we aim to continue working with the government to enhance connectivity and mitigate traffic congestion and other hazard risks and urban issues through our cooperation projects,” said Jica Philippines chief representative Noriaki Niwa.
Through the loan, Jica will help the DPWH implement structural and nonstructural measures to mitigate flood risks in the Cagayan de Oro River Basin.
The project will help construct a new dike and other flood-protection measures in the river basin to address flooding problems. The project will also contribute to sustainable economic development in Northern Mindanao areas.
Cagayan de Oro was severely battered by Tropical Storm Sendong (international code name Washi) in 2011 that affected 1,170 people, plus some 1,250 fatalities.
The Cagayan de Oro River Basin is one of 18 major rivers in the Philippines and was also among the 56 priority river basins identified by the Philippine government under the Jica-assisted Nationwide Flood Risk Assessment and Flood Mitigation Plan in Selected Areas 2006-2008.
Meanwhile, Jica will assist the DPWH in constructing major interchanges to address traffic congestion in Metro Manila, including flyovers, and road links or interchanges in Edsa/Roosevelt/Congressional, Edsa/West/North, and C-5/Green Meadows and North/Mindanao Avenue.
The road-map study has cited, among others, the urgency of decongesting traffic estimated to cost the country P6 billion per day by 2030 if the problem was not addressed.
Data show Metro Manila currently accounting for 37 percent of the country’s local output, measured as the gross domestic product.
Finance Secretary Cesar V. Purisima and Niwa signed the loan agreement for the two cooperation projects on March 26.
Jica is a strategic development partner of the Philippines since the 1960s, contributing some P35 billion in development assistance as of 2012, and remains a top donor and trade partner.