Press Release No. 127-03
28 March 2003
SECRETARY OPLE SIGNS AGREEMENT TO BRING CRITICAL DEVELOPMENT FUNDING TO SOUTHERN PHILIPPINES

Foreign Secretary Blas F. Ople and Japanese Ambassador to the Philippines Kojiro Takano signed this afternoon, at the Department of Foreign Affairs, a loan package that would fund critical development projects in the Philippines, particularly projects in the Southern Philippines.

“In signing the 26th Yen Loan package, totaling ¥13.401 billion (equivalent to Pesos 5.896 billion), we will be able to finance high-priority projects including the Autonomous Region in Muslim Mindanao’s Social Fund for Peace and Development, which will provide financial support for community development, rural infrastructure, and institutional strengthening,” Secretary Ople said after signing the agreement.

He added that this funding fits into his vision of a framework for a total strategy to bring enduring peace and development to Southern Philippines.  Secretary Ople had earlier announced plans to establish then blueprint for a US-led Marshall Plan for Mindanao.  He had also earlier said that international cooperation was a key element in achieving peace and development in Mindanao.

In addition, the loan package will also finance the rehabilitation of national roads in Central Mindanao and the construction of bypass roads and bridges in Plaridel (Province of Bulacan) and Cabanatuan (Province of Nueva Ecija).  Another project is the construction of a new landfill facility at the Subic Bay Freeport Area.

“These yen loan packages are concessional overseas development assistance loans, offering a long term payment period of thirty years with a grace period of ten years, as well as low interest rates ranging from 0.75% to 2.2% per annum,” the Secretary said. “Considering the benefits and returns, the significance and importance of this yen loan package is that it will not be a burden to our overall debt,” he added.  Also signed by Foreign Secretary Ople and Ambassador Takano was a note for a Measles Control Project, amounting to 881 million yen.

Thanking the Japanese Government, after the signing and exchange of notes, Secretary Ople said that Japan’s financial support to Philippine projects was “a very gratifying assurance that Japan remains a very important partner in Philippine development and nation building.”

Present during the signing ceremony were Governor Farouk Hussin of the Autonomous Region of Muslim Mindanao, Chairman Felicito Payumo of the Subic Bay Metropolitan Authority, and high officials of the Departments of Foreign Affairs, Finance, Health, Public Works and Highways, as well as NEDA officers involved in ODA negotiations.

END.