PH, Japan ink P116-B loan package for Metro Manila Subway

MANILA: Department of Foreign Affairs (DFA) Secretary Teodoro Locsin Jr. and Japan Ambassador to the Philippines Koshikawa Kazuhiko have signed the exchange of notes for the additional ¥253 billion (P116 billion) loan package to finance the construction of the country’s first underground railway.

The second tranche of the project’s official development assistance (ODA) loan has an annual interest rate of 0.10% — payable over 40 years with a 13-year grace period. The first tranche of the ODA loan for the project, which costs ¥104.53 billion, was signed in November 2017.

"The Metro Manila Subway will be a shining monument, better yet a state-of-the-art working system attesting to the deep friendship between the Philippines and Japan. Japan holds a preeminent role in our government’s infrastructure development agenda, which is a priority of President Duterte’s administration," Secretary Locsin stated. "I also laud the hard work put in by various Philippine agencies — the Department of Finance, the National Economic and Development Authority, the Department of Transportation, and Secretary Art Tugade (in my long experience the best, most achievement-laden Cabinet Secretary I’ve ever known) — which ensured the realization of this project."

In parallel, Ambassador Koshikawa said, "This year marks the 65th Anniversary of the normalization of Diplomatic Relations and 10th Anniversary of Strategic Partnership between Japan and the Philippines. This signing will deepen and strengthen the cooperation and partnership of both countries, and I am happy to sign this Exchange of Notes today."

The 33-kilometer Metro Manila Project will have 17 stations and targets to cut down the travel time from North Avenue in Quezon City to the Ninoy Aquino International Airport (NAIA) from one hour and 10 minutes to just 35 minutes. It will extend across Valenzuela, Quezon City, Pasig, Makati, Taguig, Parañaque, and Pasay. It is expected to have an initial capacity of up to one million passengers per day.

The construction of the subway line’s first segment has already started, with two out of 25 tunnel boring machines already in Manila. Meanwhile, the trains are also ongoing manufacturing. All contracts will be awarded before President Rodrigo Duterte’s term ends.

Photos from the Department of Transportation

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