PRESS RELEASE

Finance Secretary Ralph G. Recto has underscored that the new maritime vessels acquired by the Philippine government from Japan will steer the country towards the safe harbors of economic security and prosperity for all Filipinos.

“They will not only help strengthen our national security but also complement our broader infrastructure modernization program to spur rapid inclusive growth,” Secretary Recto said in his remarks.

The financing agreement for Phase III of the Maritime Safety Capability Improvement Project for the Philippine Coast Guard (PCG) was signed between Secretary Recto and Japan International Cooperation Agency (JICA) Chief Representative Takema Sakamoto on June 10, 2024.

With a concessional financing of JPY 64.38 billion (about PHP 24.57 billion), the project involves the design, construction, and delivery of five units of 97-meter multi-role response vessels (MRRVs). 

It carries an interest rate of 0.30% per annum for non-consulting services and 0.20% per annum for non-consulting services, to be repaid in 40 years, inclusive of a 10-year grace period.

It also includes a 5-year Integrated Logistics Support (ILS) to ensure the sustainability and operation readiness of the MRRVs.

To date, 12 MRRVs have been provided to the Philippines by JICA under favorable terms for the first and second phases of the project as well as various PCG assets and capacity building through pure grant financing

Secretary Recto stressed that the vessels will better equip the PCG to fulfill its mission of protecting the country’s maritime sovereignty and defending the rights of Filipino fisherfolks.

He said the vessels will significantly enhance the PCG’s ability to prevent piracy, protect the environment, counter smuggling, and immediately respond to search and rescue operations.

“In addition to the said hard component support, we have been supporting PCG continuously in terms of enhancing their knowledge and skills development through various technical cooperation programs such as long-standing dispatch of JICA experts, short-term trainings, and scholarship programs. Proudly, I would like to reiterate that the best mix of hard and soft support is one of the beauties of Japan’s JICA’s unique cooperation,” JICA Chief Representative Sakamoto said.

“Going forward, Japan will steadily continue its support for the PCG’s capacity development. I sincerely hope that this project will further deepen the friendship and cooperative ties that Japan and the Philippines have built through the years,” Japan Ambassador to the Philippines Endo Kazuya said in his remarks.

Meanwhile, Department of Transportation (DOTr) Secretary Jaime Bautista once again expressed his gratitude to the Department of Finance (DOF) for brokering and negotiating the favorable terms of the agreement with JICA.

The Finance Chief thanked the Government of Japan for being a reliable ally of the Philippines in strengthening its maritime security as well as for its solidarity and relentless support for the Filipino people.

“Together, let us continue building ships that will strengthen our bonds and sail us faster and further towards a better future for the Filipino nation,” he said.

Also present during the signing ceremony were DOF Undersecretary Joven Balbosa; DOTr Undersecretary Elmer Sarmiento; DOTr Undersecretary Timothy John Batan; PCG Deputy Commandant Coast Guard Vice Admiral Allan Victor Dela Vega; National Economic and Development Authority (NEDA) Assistant Secretary Roderick Planta; DOF OIC-Assistant Secretary Donalyn Minimo; Department of Foreign Affairs (DFA) Director Princess Tomas-Tayao; JICA Senior Representative Keisuke Fukui; and Embassy of Japan First Secretary Ide Masashi.

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