# Mitsubishi Shipbuilding builds five patrol ships for Manila in loan pact *Funded by a 64.38 billion yen JICA loan, the 97-meter vessels will expand Manila's offshore fleet to seven large hulls as Beijing steps up pressure in contested waters.* **Published:** September 8, 2026 **By:** Ryo Matsuda **Section:** Shipbuilding & Defense — Japan **Format:** Breaking **Confidence:** high **Source:** https://eastasiabrief.com/shipbuilding/mitsubishi-shipbuilding-builds-five-patrol-ships-manila-loan-pact-215 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - The Philippine Department of Transportation said Sept. - The procurement forms Phase III of the Maritime Safety Capability Improvement Project, the department said. - The loan agreement carries a 40-year repayment schedule with a 10-year grace period, according to Philippine Department of Finance records. ![Shipyard workers stand near large vessel hulls as sparks shower down during construction work at an industrial dock. (AI-generated image)](https://eastasiabrief.com/media/2026-09-08-bf71e448cfae.webp) *Shipyard workers stand near large vessel hulls as sparks shower down during construction work at an industrial dock. (AI-generated image)* The Philippine Department of Transportation said Sept. 8 that Mitsubishi Shipbuilding Co. had entered the execution phase to construct five 97-meter patrol vessels for the Philippine Coast Guard. The procurement forms Phase III of the Maritime Safety Capability Improvement Project, the department said. Japan finances the contract through a 64.38 billion yen ($507 million) official development assistance loan from the Japan International Cooperation Agency. The loan agreement carries a 40-year repayment schedule with a 10-year grace period, according to Philippine Department of Finance records. Tokyo set interest charges at 0.30% annually for non-consulting services and 0.20% for consulting work. The package includes a five-year integrated logistics support contract to supply spare parts, shore maintenance and technical advisory services. Philippine and Japanese agency estimates show the maintenance package represents several billion yen in lifecycle funding. Contract implementation follows an agreement signed on April 21, 2026, according to procurement records released by Manila. The agreement took legal effect on June 12 after transportation authorities issued the formal notice to commence work. Engineering delegations from both countries held technical kick-off meetings from Aug. 24 to 28, the transport department said. The sessions took place at Mitsubishi Shipbuilding's Shimonoseki Shipyard in Yamaguchi Prefecture, Japan. The Philippine delegation was led by Assistant Secretary for Maritime Villamor Ventura Plan. Technical teams reviewed engineering blueprints, production milestones and operational risk management frameworks before steel fabrication begins in the yard. The five incoming cutters will expand Manila's fleet of 97-meter Multi-Role Response Vessels from two to seven hulls. Coast guard planners said seven large hulls establish the minimum baseline for maintaining continuous offshore rotations. The ships are modeled on the Japan Coast Guard Kunigami-class offshore patrol cutter, coast guard documents show. Each vessel measures 96.6 meters in overall length, with a beam of 11.5 meters and a draft of 4.3 meters. Diesel propulsion machinery generates 13,200 kilowatts, providing top sustained speeds above 24 knots, according to builder specifications. The hull design delivers an operating radius exceeding 4,000 nautical miles at an economic cruising speed of 12 knots. Each ship carries fuel, fresh water and provisions to sustain missions for more than 15 days without resupply. The platform features an aft flight deck and an enclosed hangar sized for an Airbus H145 helicopter. Onboard equipment includes two rigid-hull inflatable boats, emergency medical treatment rooms and dedicated compartments for rescued personnel, equipment manifests show. The vessels carry direction-finding systems and secure communication gear for joint maritime operations. Mitsubishi Shipbuilding previously built two identical vessels, BRP Teresa Magbanua and BRP Melchora Aquino, delivered to Manila in 2022 under Phase II. Those two vessels remain the Philippine Coast Guard's largest commissioned assets. Under Phase I of the bilateral initiative, Japanese yards built 10 44-meter Parola-class patrol boats between 2016 and 2018. Japanese loan facilities have accounted for 12 of the Philippine Coast Guard's primary response vessels over the past decade. Financing flows under the Special Terms for Economic Partnership mechanism, known as STEP, according to JICA lending guidelines. The terms require the prime contractor to be a Japanese enterprise, channeling bilateral development assistance directly into domestic shipbuilders. The procurement strengthens Japan's industrial pipeline for specialized government hulls at Shimonoseki, yard activity data indicate. The facility focuses on complex non-combatant vessels, including ferries, cable layers, oceanographic research ships and sovereign patrol cutters. The fleet expansion addresses heightened maritime friction between Manila and Beijing across the South China Sea, Philippine operational reports show. Manila regularly deploys its two existing 97-meter flagships to conduct resupply escorts and enforce sovereign jurisdiction around disputed features. Finance Secretary Ralph Recto said in Manila that expanded patrol capabilities defend exclusive economic zones and sovereign rights for domestic fishing fleets. The vessels will conduct search and rescue, anti-smuggling enforcement and marine environmental monitoring. The contract also incorporates human capital development and operational technical assistance, transport officials said. Philippine Coast Guard crews will complete engineering courses and sea trials in Japan before sailing the vessels across to Manila. Delivery of the five new hulls will proceed sequentially across 2027 and 2028, according to the project timeline released by Manila. The additions will allow the Philippine Coast Guard to maintain permanent presence across western and northern maritime zones. Mitsubishi Shipbuilding and its parent company Mitsubishi Heavy Industries had not issued an independent statement on the project milestone as of Sept. 9. Official statements released by Manila did not specify the target date for first steel cutting. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Japan-Philippines MRRV program | HD Hyundai and Hanwha Ocean face entrenched Japanese presence in Philippine patrol procurement | China Coast Guard faces expanded Philippine continuous presence around disputed South China Sea reefs | Mitsubishi Shipbuilding secures yard workload and component export pipeline at Shimonoseki through 2028 | Maritime law enforcement procurement shifts toward long-term concessional ODA and logistics packages | ## In this story - **Companies:** Mitsubishi Shipbuilding, Mitsubishi Heavy Industries - **Tickers:** 7011.T - **Exposed:** Philippine Coast Guard, Japan International Cooperation Agency - **Policy:** Economic Security, Subsidies - **Impact:** Order Book, Supply Chain ## Primary sources 1. jica.go.jp 2. pna.gov.ph 3. militarnyi.com 4. theguru.co.kr 5. navaltoday.com --- Cite as: East Asia Brief, "Mitsubishi Shipbuilding builds five patrol ships for Manila in loan pact," September 8, 2026. https://eastasiabrief.com/shipbuilding/mitsubishi-shipbuilding-builds-five-patrol-ships-manila-loan-pact-215