The Philippine government is preparing to formalize 11 new financing deals with Japan amounting to $2.41 billion under Tokyo’s fiscal year 2026, according to Finance Secretary Frederick Go.
The planned funding, equivalent to 371.31 billion yen, is intended to bankroll priority undertakings under the country’s infrastructure drive. Speaking before Japanese and Philippine business leaders, Go described the prospective agreements as evidence of sustained cooperation between the two governments.
“This reflects continued alignment between our infrastructure priorities and Japan’s development support,” Go said during the joint meeting.
Apart from the 2026 pipeline, Manila is seeking to finalize three more loan arrangements worth $1.58 billion before the end of Japan’s fiscal year in March. These additional facilities, totaling 243.31 billion yen, are expected to be provided by the Japan International Cooperation Agency.
Japanese assistance continues to back major transport initiatives in the country, including the Metro Manila Subway and the Central Mindanao Highway, both designed to enhance mobility and strengthen supply chains, particularly for agricultural goods. Earlier this month, Tokyo approved a separate ₱8.1-billion loan to rehabilitate the Metro Rail Transit Line 3.
Japan remains the Philippines’ top source of official development assistance. Data from the Department of Finance show that as of December 2025, Japanese loan and grant pledges reached about $13.96 billion, representing more than one-third of the country’s overall ODA portfolio. Of this total, $13.65 billion accounts for concessional loans, while grants from Japan stood at nearly $308 million, making it the third-largest grant contributor.
Since the administration of Ferdinand Marcos Jr. began, 12 loan agreements backed by Japan have been concluded, with a combined value of $5.92 billion or 910.38 billion yen.
“All these figures speak volumes,” Go said. “They reflect trust in the Philippines’ economic direction, confidence in our institutions, and a shared belief in long-term partnership.”
During the same forum, the finance chief invited Japanese firms to participate in projects offered through the government’s public-private partnership program, which currently covers 49 of the 209 flagship infrastructure ventures being rolled out nationwide.
