The Philippines finalized an agreement with Japan on Thursday that will provide at least P611 million worth of military equipment to the country’s defense sector.

Foreign Affairs Secretary Enrique Manalo and Japanese Ambassador to the Philippines Endo Kazuya signed the Official Security Assistance (OSA) agreement for the Department of National Defense (DND) and Armed Forces of the Philippines (AFP) in a ceremony at the Department of Foreign Affairs in Manila.

The OSA is a grant aid cooperation framework that provides equipment, supplies, and infrastructure development assistance to the armed forces and other related organizations of recipient countries.

The agreement is worth JPY1.6 billion, approximately P611 million, and includes the provision of coastal radar systems, automatic rigid-hull inflatable boats, and other equipment.

The OSA signifies the strengthening of the relationship between the two nations, Manalo said.

“The OSA we signed today is really significant in the sense that it symbolizes, in a very concrete way, the growing and strengthening relationship between the Philippines and Japan — not only in the security field, even though it is an OSA, but also in the economic and political areas,” he told reporters in an interview.

“So, it further solidifies the strong and growing collaboration between the Philippines and Japan in promoting peace, stability, and cooperation in our region,” he added.

Endo, for his part, said the signing of the OSA is a symbol of Japan’s commitment to working with the Philippines to enhance its capabilities in the maritime sector.

“We would like to continue working on security cooperation with the Philippine government and the Armed Forces of the Philippines,” he said.

In a separate statement, the Japanese Embassy said the assistance aims to strengthen the Philippines’ defense capabilities amid the rising tensions in the West Philippine Sea.

“The Philippines is located along important sea lanes, including the South China Sea and the Luzon Strait, and plays a key role in regional security,” the embassy said.

“This project will provide assistance to the Philippine Navy to strengthen its maritime security capabilities and to the Philippine Air Force to enhance its monitoring and surveillance capabilities,” it added.