It’s a go: PH, Japan sign P357B loan for Manila subway
It took six months to finalize this loan agreement.
The Philippines is sure to build its very first subway system after it signed a loan deal for financial and technical support from Japan.
On Friday, March 16, Finance Secretary Carlos Dominguez III and Japan International Cooperation Agency (JICA) Chief Representative Yoshio Wada signed the first tranche of the P356.96 billion funding for the Metro Manila subway project of the Duterte administration.
The first loan line extends some P50 billion to get the project started, or $935 million out of the $7.05-billion total project cost.
The loan is payable in 40 years plus a 12-year grace period, and comes with a 0.10 percent annual interest rate for non-consulting services and 0.01 percent per annum for consulting services.
“The timely completion of the subway project will crown the aggressive infrastructure program the administration of President Duterte has initiated. It will likewise crown the achievement of the economic diplomacy the Duterte administration has undertaken,” Dominguez said.
The subway line will connect Mindanao Avenue in Quezon City all the way to Parañaque. The funding also includes the creation of a depot in Valenzuela, plus the creation of a Philippine Railway Institute.