Philippines eyes $2.4B in new Japan loans for 2026 projects — DILG

The Philippines is targeting to secure $2.41 billion in 11 new loan agreements from Japan under its fiscal year 2026, Finance Secretary Frederick Go said.

Go noted that the planned loans, equivalent to 371.31 billion Japanese yen, will fund priority infrastructure projects aligned with the government’s development agenda, reflecting continued cooperation between the two countries.

Before the end of Japan’s fiscal year 2025 in March, the Philippines is also seeking to finalize three additional loan deals worth approximately $1.58 billion, or 243.31 billion Japanese yen, to be extended by the Japan International Cooperation Agency.

Among the key projects backed by Japanese financing are the Metro Manila Subway and the Central Mindanao Highway, both aimed at improving connectivity and boosting economic activity, particularly in agriculture and transport.

Earlier, Japan approved a P8.1-billion loan for the rehabilitation of Metro Rail Transit Line 3, reinforcing its role as the country’s largest source of official development assistance.

As of December 2025, Japan’s total loan and grant commitments to the Philippines reached $13.96 billion, accounting for 33.54 percent of the country’s total ODA portfolio, with 12 loan agreements worth $5.92 billion signed since the start of the Marcos administration.