Manila, Oct 29 —The Philippines and Japan have formalized several agreements that would help the former improve its maritime safety capability, including a deal for a P16.5 billion yen concessional loan covered by Tokyo’s Official Development Assistance (ODA) for the acquisition of two large-scale patrol vessels for the Philippine Coast Guard (PCG).
The agreement for the 16.5-billion yen loan signed by Philippine Finance Secretary Carlos Dominguez and Japan International Cooperation Agency (JICA) presidentShinichi Kitaoka during President Rodrigo Duterte’s official visit to Japan is part of Tokyo’s continuing assistance to the PCG’s Maritime Safety Capability Improvement Project (MSCIP).
President Duterte and Japanese Prime Minister Shinzo Abe witnessed the signing of the Loan Agreement, as well as the Exchange of Notes on the pact between the Department of Foreign Affairs and Japan’s Ministry of Foreign Affairs.
The JICA loan, equivalent to P6.8 billion, has an interest rate of between 0.01 percent and 0.10 percent with a maturity period of 40 years, inclusive of a 10-year grace period, according to the Department of Finance (DOF).
The acquisition of two 94