PH & Japan Ink Documents for Second Tranche of $2.3-Billion Subway Loan

On Tuesday, the Department of Foreign Affairs announced that Japan and the Philippines have formalized the second tranche of the $2.3-billion loan for the Metro Manila Subway Project Phase 1.

This was after Foreign Affairs Secretary Teodoro Locsin and Japanese Ambassador Koshikawa Kazuhiko exchanged signed documents through the Japan International Cooperation Agency (JICA).

“The Metro Manila subway will be a shining monument, a state-of-the-art working system attesting to the deep friendship between the Philippines and Japan,” expressed Locsin.

The major infrastructure project has been priced over ₱350 billion and is projected to be completed in 2025. At least 85% of the total cost was loaned from Japan, to be paid in 40 years with 0.1% interest and a grace period of 12 years.

Partial operations are expected to be opened by the end of the year, according to Transport Secretary Arthur Tugade. A delay to January or February of next year has also been planned as a “worst-case scenario”.

The Metro Manila Subway Project was approved way back in 2014, while the first tranche of the loan was signed in March 2018. A year later, the government broke ground for the project in February 2019.

Source: ABS CBN