The Philippines enter into loan agreement with Japan for Metro Manila Subway project
Singapore, Malaysia, Taiwan, Japan, Thailand and majority of the big players from Asia have had subway systems for years. Thanks to Japan, we will now have our own in the next few years.
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JICA lends 51.3 Billion Pesos
The loan amounted to 104.5 billion yen and its peso equivalent is P51.3 billion. The official development assistance (ODA) extended by JICA is said to be the first tranche of loans to be used in the project. The borrowing interest rate is at 0.10 percent per annum for non-consulting services while its consulting services stood at 0.02 percent per annum. The repayment period is 40 years including a 12-year grace period in case of non-payment. The total cost of the project will be P356.96 billion.
The largest infra project needed by the Philippines
The Metro Manila Subway is considered to be the biggest project under the P8 trillion program of the Philippines. The route will run from Mindanao Avenue in Quezon City to Ninoy Aquino International Airport (NAIA) covering a 25.3-kilometer distance. The project will include a depot in Valenzuela, electro-mechanical systems and the establishment of a Philippine Railway Institute (PRI). Apart from that, there would also be a commercial space that will defray the expenses for the use of said facility. It will be partially complete on 2020 but by 2022, the government aims to open three subway stations. The government aims the subway to fully operate by 2025. But this year, construction is said to begin by the third quarter.
Other infrastructure projects by JICA
In relation to the funding by Japan, it will also fund other infrastructure projects of the National Development Authority (NEDA) totalling to P715 billion. The other infrastructure projects of NEDA will be funded by China, South Korea, Asian Development Bank (ADB) and World Bank. This project has actually been discussed last November 2017 in the 31st Association of Southeast Asian Nations by Foreign Affairs Secretary Alan Peter Cayetano and Japanese Ambassador Kojie Haneda. In relation to that, Japanese financing will also be obtained for the following projects: Arterial Road Bypass Phase III, Philippine National Railways North 2, the spanning of Malolos to Clark, PNR South Commuter, Davao City Waste-to-Energy project, Pasig-Marikina Travel Improvement and MRT3 rehabilitation and improvement. There is certainly plenty of projects to complete and thankfully, the Japanese government is extending their help through the financing they’re providing the country.
The subway will boost quality of life in the Philippines
The Metro Manila Subway, once completed, will finally resolve the transportation problem in Metro Manila area paving the way for a more efficient commute system. This will benefit not only commuters but also businesses. This will be a form of decongestion because the traffic problem has given the country a massive loss. JICA is quite supportive with the plan as it will help improve the lives of every Filipino in terms of connectivity and mobility. This also means a better relationship among Philippines and Japan.
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