Philippines, Japan eye 11 loan deals worth $2.41 billion

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February 21, 2026 | 12:00am

MANILA, Philippines — The Philippines and Japan are set to sign 11 loan agreements for infrastructure projects amounting to ¥371.31 billion or $2.41 billion in the next fiscal year as part of deepening economic ties.

Finance Secretary Frederick Go announced the pipeline of loan agreements with Japan during the 42nd Annual Joint Meeting of the Economic Cooperation Committees of the Philippines and Japan.

“This reflects continued alignment between our infrastructure priorities and Japan’s development support,” he said.

He said  the Philippines also expects to sign three loan agreements worth ¥243.31 billion or $1.58 billion before the end of Japan’s fiscal year in March.

Among the loan agreements expected to be signed before the current fiscal year ends is the Metro Manila Subway Project Phase 1 amounting to ¥220 billion.

The project, which is the country’s first-ever underground railway system, is expected to reduce congestion costs and unlock the capital region’s economic potential.

Also expected to be signed in the current fiscal year is the loan agreement for the Central Mindanao High Standard Highway Project’s engineering services amounting to ¥1.67 billion. This is expected to spur development in Mindanao.

Earlier this month, the Philippines signed the Exchange of Notes for the proposed second supplemental loan to rehabilitate the Metro Rail Transit Line 3 amounting to ¥21.6 billion.

“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,” Go said.

Since the start of the administration, the Philippines has signed 12 financing agreements with Japan amounting to ¥910.38 billion or about $5.92 billion.

“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 the two countries mark the 70th anniversary of their diplomatic relations this year, Go reaffirmed the Philippines’ readiness to further strengthen ties with Japan, the country’s largest source of official development assistance (ODA).

He said that as of December 2025, total loan and grant commitments from Japan amounted to around $13.96 billion, representing 33.54 percent of the country’s total ODA portfolio.

“Japan has been a steadfast partner in our past. It is a strategic partner in our present. It will remain an indispensable partner in our future,” he said.