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The Philippine government has obtained a post-disaster loan of 30 billion yen (P11,818,122,000) and a grant aid of 1.1 billion yen (P433,331,140) to acquire a Satellite Data Communication System for the Philippine Coast Guard (PCG). The loan and grant were formalized through the exchange of notes between Foreign Affairs Secretary Enrique Manalo and Japanese Ambassador Koshikawa Kazuhiko on August 8.

This marks the third time that the Japanese government has provided the Philippines with a post-disaster loan. The first loan was given after Typhoon Yolanda in 2013, while the second was granted in 2020 for the COVID-19 pandemic response. The low interest rate of 0.01% per annum is expected to enable the Philippines to respond more swiftly and flexibly to severe disasters in the future.

Japan recognizes the vulnerability of both countries to natural disasters as archipelagic nations. The provision of advanced maritime technology to the PCG aligns with Japan’s Free and Open Indo-Pacific strategy, which aims to promote stable relationships, freedom of navigation, and free trade among ASEAN countries, India, Australia, and the US.

The Satellite Data Communication System project will enhance the PCG’s law enforcement capabilities, particularly in securing the Sulu-Celebes Sea, which has a history of piracy and terrorism. This region, located southwest of the Philippines, includes the Sulu archipelago.

Given the ongoing territorial disputes, especially with China, the Philippines requires a modernized Navy and a range of advanced equipment. The satellite project will provide decision-makers in Manila with real-time information about the situation offshore, which is crucial in light of the South China Sea tensions.

Recent incidents, such as China’s blockade and use of water cannons against small Philippine vessels in the West Philippine Sea, highlight the need for improved maritime security measures.

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