Japan packed Billion Dollar loan to Philippines– Philippines has gone many problems not just territorial issues but also railway system.
Japan has pledged about US$2 billion in loans to upgrade the Philippines’ railway system in Tokyo’s biggest ever support for any Filipino project, Manila said. The low-interest loan will be used to finance a planned 36.7-kilometer elevated commuter railway to link Manila with Malolos City to the north.
The package is a signal of increasing cooperation between the former second world war foes, including “closer security cooperation,” the foreign department said.On Wednesday, in a meeting of Asia-Pacific foreign ministers in Malaysia, Philippine Foreign Secretary Albert del Rosario received the pledge from his Japanese counterpart Minoru Kiuchi.
Both countries was locked in territorial disputes with China, have strengthened their cooperation on defense in a bid to counterbalance Beijing’s regional clout. Philippine President Benigno Aquino’s spokesman said the loan underlined the “robust bilateral relations between the Philippines and Japan” and the two countries could continue to work together on maritime security.
“It affirms the confidence and support of the Japanese government to the reforms undertaken by the Aquino administration,” Herminio Coloma said. “I think we should not think we would be in a vulnerable situation because our position is recognized by the international community and the next administration should also consider the repercussions of the current foreign policy on our country and our economy,” he added.
This year, the Philippine military anticipated that China would be able to restore activities in several reefs in the argued area before year-end. Philippines’ assessment of the situation, China’s reclamation spans at least five coral reef areas covering more than 300 hectares of artificial islands which house structures that may be used for military purposes.IMAGE/philstar.com