The Government of the Philippines is targeting the signing of 11 new loan agreements worth approximately USD2.41 billion under Japan’s fiscal year 2026. The loans will finance priority infrastructure projects aligned with the government’s flagship programme.
In addition, the government aims to conclude three more loan agreements before the close of Japan’s FY2025 in March, amounting to USD1.58 billion. These loans will be extended by the Japan International Cooperation Agency (JICA). Among the key projects supported by Japan are the Metro Manila Subway and the Central Mindanao Highway. Earlier this month, Japan also approved a PHP 8.1 billion loan for the rehabilitation of Metro Rail Transit Line 3.
Japan remains the Philippines’ largest source of official development assistance (ODA). As of December 2025, total Japanese loan and grant commitments stood at approximately USD13.96 billion, representing 33.54 per cent of the country’s total ODA portfolio. Of this amount, USD13.65 billion consists of ODA loans, while grants total USD307.97 million. Since the start of the Marcos administration, 12 Japanese-funded loan agreements valued at USD5.92 billion have been signed.