MANILA: The Philippines is targeting to seal 11 new loan agreements worth US$2.41 billion under Japan’s fiscal year 2026, Finance Secretary Frederick Go said.
These planned agreements, equivalent to 371.31 billion Japanese yen, will finance priority projects aligned with the government’s infrastructure programme.
“This reflects continued alignment between our infrastructure priorities and Japan’s development support,” Go said at a joint meeting between Japanese and Philippine business groups on Thursday (Feb 19).
Before the close of Japan’s fiscal year 2025 in March, Go said the Philippines is also seeking to sign three additional loan agreements totaling $1.58 billion, or 243.31 billion Japanese yen. These will be extended by the Japan International Cooperation Agency.
Go cited key transport projects supported by Japan, including the Metro Manila Subway and the Central Mindanao Highway, which aims to improve regional connectivity and agricultural logistics.
Earlier this month, Japan announced a new P8.1-billion loan for the rehabilitation of the Metro Rail Transit Line 3.
Top ODA source
Japan remains the Philippines’ largest source of official development assistance (ODA).
As of December 2025, total Japanese loan and grant commitments stood at approximately $13.96 billion, accounting for 33.54 per cent of the country’s total ODA portfolio.
Of that amount, $13.65 billion consists of ODA loans, representing 34.44 per cent of total loans extended to the Philippines.
Japan is also the Philippines’ third-largest ODA grant provider, with $307.97 million, or 15.6 per cent of total grants.
Since the start of the Marcos administration, Go said 12 Japanese-funded loan agreements totaling $5.92 billion (910.38 billion Japanese yen) have been signed.
“All these figures speak volumes,” he said. “They reflect trust in the Philippines’ economic direction, confidence in our institutions, and a shared belief in long-term partnership.”
At the event, Go also urged Japanese investors to submit proposals under the Philippines’ public-private partnership (PPP) programme.
The Marcos administration is currently implementing 209 infrastructure flagship projects, 49 of which are structured as PPPs. - Philippine Daily Inquirer/ANN
