The Philippines and Japan have signed a new loan deal that will see the expansion of a road in the Bulacan province in the Philippines. The load deal is for 9.3 billion Japanese YEN (US$88 million) for the construction of the third phase of the Arterial Road Bypass Project.

Phillipines road

The loan is for the third phase of the Arterial Road Bypass Project

The Philippine’s Department of Finance (DOF) also noted that the Philippines will provide counterpart funding of PHP 1 billion (US$15 million) for the project, which has a total cost of 10.8 billion YEN (US$104 million).

The Arterial Road Bypass is a 24 km arterial road that will link the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway, in San Rafael, Bulacan.

The agreement for Phase 3 of the project, according to the DOF, provides for interest rates of 1.5% per annum for non-consulting services and 0.01% per annum for consulting services with a repayment period of 20 years and a 10-year grace period.

Phase 1 of the project was completed 2012, and Phase 2 is expected to be inaugurated in May 2018.

Both Phase 1 of the project at 6.3 billion YEN (US$55.6 million) and Phase 2 at 4.591 billion YEN (US$40.90 million) were financed with official development assistance (ODA) loans from Japan signed in 2004 and 2012.

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