The Department of Finance (DOF) and the Japan International Cooperation Agency (JICA) will execute around $1.5 billion worth of pipeline projects for 2024-2025 at the back of four major loan agreements within the year. 

In a statement on Thursday, DOF said the development was discussed during a meeting between DOF Undersecretary for the International Finance Group (IFG) Joven Balbosa and JICA's Director General of Southeast-Asia and Pacific Department Hayakawa Yuho last month at the JICA Office in Washington, D.C.

Further building on this partnership, the DOF and JICA have discussed executing a pipelined commitment of around JPY 227.6 billion (around $1.5 billion) from 1 April 2024 to 31 March 2025, as well as a yearly average pipeline of about JPY 249.2 billion (roughly $1.6 billion) over the next five years from 2023 to 2027.

"The DOF and JICA also discussed the timeline and preparations required to facilitate the signing of the loan agreements for projects on maritime safety, roads, and flood risk management, which are targeted before the end of the year," the Finance Department said.

"Aside from the usual portfolio of infrastructure projects funded by JICA, the agency shared that it is expanding into other sectors that are in line with the Marcos, Jr. administration's development objectives, such as agriculture, education, and health," it added.

The JICA likewise expressed its openness to scale up its policy-based lending, with an intent to co-finance the Climate Change Action Program (CCAP), Subprogram 2 with the Asian Development Bank (ADB) and Agence Française de Développement (AFD).

The CCAP will support the Philippines in implementing its national climate policies, including its Nationally Determined Contribution (NDC).

The program will intensify efforts to transform key sectors toward a climate-resilient and low-carbon economy.

Moreover, both parties engaged in an in-depth discussion on project implementation issues, to which they committed to maintaining open dialogue and addressing any delay to improve overall project management and minimize costs to the government.

The DOF also sought JICA's assistance in bringing in more private sector financing to support the administration's development goals as the Philippines transitions to an upper-middle income country (UMIC) status, which would mean it would gradually move away from concessional financing.