Philippines receives ¥10-B post-disaster standby loan from Japan

The Japan International Cooperation Agency (JICA) said Friday  the Philippine government has received JP¥10-billion as the final tranche of its Post Disaster Stand-by Loan Phase 2 (PDSL 2).

In a statement, JICA said the latest loan disbursement will boost the Philippines’ COVID-19 response strategies as virus cases surge.

The amount is the fourth and final tranche and forms part of the JP¥50 billion inked by the Philippines and Japan in September 2020 for the country’s contingency funds in response to the financial demand of post-disaster recovery in case of natural disasters and public health threats.

The latest disbursement followed the third disbursement — JP¥20-billion — in June. 

JICA also released JP¥10 billion in January to support the rescue, relief, and rehabilitation of areas devastated by Typhoons Quinta, Rolly, and Ulysses in 2020. 

This followed the JP¥10 billion released in October 2020 to support the Philippines’ economic recovery measures in light of the COVID-19 pandemic.

Under the JP¥50-billion PDSL 2, the disbursement of the standby loan to the Philippines will be triggered by either a declaration of a state of calamity or declaration of a state of public health emergency.

For cash grants

In a separate statement, Finance Secretary Carlos Dominguez III said the fourth and final tranche of the  JP¥50-billion PDSL 2 shall be used to support government efforts in providing emergency cash grants to vulnerable sectors in the National Capital Region (NCR).

In the case of the current COVID-19, the imposition of an enhanced community quarantine (ECQ) or its equivalent in the NCR or in any other highly urbanized area in the country will trigger the disbursement of the loan.

The disbursement was made in view of the recent declaration of an ECQ in the NCR from August 6 to 20 to curb the spread of the highly transmissible COVID-19 Delta variant, Dominguez said.

Dominguez said he requested JICA chief representative Eigo Azukizawa for the release of the final tranche of the PDSL-2 loan to support the government’s implementation of its Social Amelioration Program (SAP) that aims to provide emergency subsidies to affected low-income households and displaced workers in the NCR, which was placed under ECQ as a preemptive measure against the latest COVID-19 wave.

“The JP¥10 billion disbursement will also help the government implement “other mechanisms necessary to properly implement COVID-19 response and recovery interventions in the country,” he said.

For his part, Azukizawa said JICA continues to support partner countries like the Philippines in curbing potential breakouts from COVID-19 variants and help Filipinos build back better from this public health crisis.

“As development partners, we need to work together to manage the crisis, strengthen health systems, and save lives. JICA’s PDSL 2 assistance will hopefully support effective and sustainable measures against COVID-19 in the Philippines,” Azukizawa said.

Aside from the PDSL 2 disbursements, JICA said it has also supported the Philippines’ management of COVID-19 through a JP¥50 -billion Crisis Response Emergency Support Loan for medical response, social assistance, and support to small businesses, agriculture, and other vulnerable sectors, as well as equipment for testing and treatment of COVID-19 for the Research Institute for Tropical Medicine (RITM) and San Lazaro Hospital.

A JICA-Philippines technical cooperation is also underway to help build an integrated public health laboratory network in the country for future disease outbreaks, it said.  —KBK, GMA News