The Philippines is lining up nearly $9 billion worth of infrastructure financing with Japan across fiscal years 2025 and 2026, Department of Finance (DoF) Secretary Frederick Go announced, signaling sustained momentum in the country’s biggest source of official development assistance (ODA).
Speaking at the 42nd Annual Joint Meeting of the Philippine and Japan Economic Cooperation Committees (PHILJEC-JPECC) on 19 February, Go framed the pipeline as both an infrastructure and investor-confidence story, as Manila marks 70 years of diplomatic relations with Tokyo.
“Japan has been with us at every critical juncture of our development journey. And today, we stand not only as partners, but as co-architects of shared prosperity in the Indo-Pacific,” Go said.
Multi-year financing pipeline
Before the close of Japan’s Fiscal Year 2025, the Philippines is targeting the signing of three additional financing agreements totaling JPY 243.31 billion (about $1.58 billion). These include funding for major infrastructure projects such as the Metro Manila Subway and the Central Mindanao Highway.
For Japan’s Fiscal Year 2026, both governments aim to finalize 11 more financing agreements amounting to JPY 371.31 billion (approximately $2.41 billion).
Since the start of the current administration, 12 financing agreements totaling JPY 910.38 billion (around $5.92 billion) have already been signed, with projects transitioning from commitment to implementation.
“All these figures speak volumes. They reflect trust in the Philippines’ economic direction, confidence in our institutions, and a shared belief in long-term partnership,” Go said.
As of December 2025, total loan and grant commitments from Japan reached approximately $13.96 billion, accounting for 33.54 percent of the country’s total ODA portfolio, making Japan the Philippines’ biggest grant partner.
Secretary Go cited the recent signing of the exchange of notes for the proposed second supplemental loan for the MRT-3 Rehabilitation Project, describing it as a key investment in urban mobility and productivity.
“Each project reflects Japan’s reputation for quality infrastructure — durable, efficient, and future-ready. And each project reflects the Philippines’ determination to build better, faster and smarter,” he noted.
Investor confidence message
Addressing business leaders from both countries, Go emphasized that the Philippines’ macroeconomic fundamentals remain intact, citing steady growth, manageable inflation, prudent fiscal management and sustained investments.