The Japanese government has pledged US$9 billion in investments and official development assistance (ODA) in support of the Philippines’ infrastructure build-up and anti-drug campaign, as well as committed to pursue bilateral agreements in agricultural development and maritime security.
“For the further development of the Philippines, we will create business opportunities through ODA and private sector investments which together will be of the order of one trillion yen over the next five years,” Japanese Prime Minister Shinzō Abe said in a joint statement with Philippine President Rodrigo Duterte.
The Prime Minister said Japan “will leverage Japanese technology and know-how to the fullest extent to positively cooperate for the improvement of infrastructure in Metro Manila and the whole of the Philippines.”
He added that a joint committee on economic cooperation and infrastructure will be formed through “which both the private and public sectors will provide a strong underpinning for nation building.”
Trade Secretary Ramon Lopez said the Philippine government would be generating opportunities for Japanese investors in five priority areas—manufacturing, infrastructure and logistics, tourism, services, and agribusiness.
Japan also vowed to establish rehabilitation facilities to support the government’s campaign against illegal drug use.
Japanese press secretary Yasuhisa Kawamura, meanwhile, said Japan would like to contribute to the Philippines’ infrastructure development, including in the areas of transportation and electricity, using Japanese expertise.
He said that “Japan is very eager of this cooperation for the business and the economic development of the Philippines by utilising all those available resources.”
He noted, however, that the Philippines must vow to provide a business-friendly environment.
“At the same time, the Prime Minister underlined that this is a two-way street. This is not just a one-way inflow of investments of money from Japan. I’d like to emphasize that a business-friendly environment on the side of the Philippines is also necessary. We’ll very much appreciate it if the Philippine officials and the private sector will cooperate with us,” Kawamura said.
Duterte said he and Abe have instructed their respective agencies to seek new areas of collaboration as well as to work on fulfilling the agreements signed in Tokyo last year during the Philippines’ state visit.
“As part of those efforts, we are encouraging our business sectors to intensify two-way trade and investments,” Duterte said.
The two countries also signed five deals focused mainly on agriculture and maritime security.
These include an exchange of notes on the grant of JPY600 million or $5.2 million for high-speed boats and other counter-terrorism equipment for the Philippine Coast Guard (PCG); a memorandum of cooperation (MOC) on a low-carbon growth partnership and joint crediting mechanism; and an MOC between PCG and Japan Coast Guard to promote maritime safety, security, and marine environment protection.
There is also an MOC between the Philippines’ Presidential Communications Operations Office and Japan’s Ministry of Internal Affairs and Communications on the proof of concept and testing of road traffic information system through data broadcasting; as well as a loan agreement and guarantee letter on harvesting agribusiness opportunities through robust and vibrant entrepreneurship.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
