PH, Japan sign first loan tranche of $7.05 B for Metro subway project
The Philippine government and Japan International Cooperation Agency (JICA) sealed yesterday the first tranche of the loan agreements for the country’s first subway system in Metro Manila.
Finance Secretary Carlos G. Dominguez III represented the Philippine government in signing the $7.05 billion (104.53 billion yen) loan for the initial phase of the 30-kilometer Metro Manila Subway project.
According to JICA, the first loan deal is only a portion of the 800-billion yen funding requirement to complete the subway connection between Mindanao Avenue in Quezon City, Food Terminal, Inc. (FTI) in Taguig City and Ninoy Aquino International Airport (NAIA).
Dominguez said the first phase will cover 14-underground railway stations with the possible extension of one to two more stops from Mindanao Avenue to NAIA.
The first tranche of the loan agreement carries an interest rate of 0.10 percent per annum for non-consulting services and 0.01 percent per annum for consulting services, which will be repaid within 40 years inclusive of a 12-year grace period.
The project includes a depot in Valenzuela, electro-mechanical systems and rolling stock, and the establishment of a Philippine Railway Institute (PRI), Dominguez said.
“The Institute will provide training as well as do research and development on regulation, train operations and maintenance,” Dominguez said during the signing ceremony held at the Department of Finance (DOF) headquarters.
“This will build a corps of expert train personnel to manage not only the subway system but all the commuter rail lines of the country. It is about time that our commuter lines be run by real experts,” he added.
The subway system has been part of the joint National Economic and Development Authority (NEDA)-JICA Roadmap for Transport Infrastructure Development of Metro Manila and its surrounding areas.
“The detailed engineering design for the subway, which is being funded under a JICA grant, is currently ongoing. The design includes flood management features and applies the best seismic technology there is,” Dominguez said.
“We will acquire tunnel boring equipment to hasten the construction period. The Philippine government commits to working on this project 25/8 to get it done at the soonest possible time,” he added.
In line with the “Fast and Sure” approach, Dominguez shared that the government processed the loan approvals for the project within the six-month period, from the NEDA Board approval in September last year up to the signing of the Loan Agreement yesterday.
“We are targeting May 2022 to begin operation of the first three of the subway stations — Mindanao Avenue-Quirino Highway, Tandang Sora, and North Avenue. The entire Central Zone will be operational by 2025,” Dominguez said.