3rd loan tranche for MM subway project expected in March

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3rd loan tranche for MM subway project expected in March
Finance Secretary Ralph Recto and Transportation Secretary Jaime Bautista inspect the East Valenzuela depot of the Metro Manila Subway Project. Photo from the Department of Finance.
  • The government aims to finalize a P55.7-billion loan from the Japanese government by March for the third phase of financing the Metro Manila Subway Project
  • Finance Secretary Ralph Recto affirmed the DOF’s commitment to expedite the loan agreement for the MMSP
  • The first tranche of P38.8 billion was secured in March 2018, followed by the second tranche of P94.1 billion in February 2022

The third loan tranche for the Metro Manila Subway Project (MMSP) worth P55.7-billion (150-billion yen) from the Japanese government is expected in March.

Speaking to media during a worksite visit at the subway’s East Valenzuela Depot on Feb 26, Finance Secretary Ralph Recto affirmed the government’s commitment to expedite the loan agreement, with the Department of Finance currently working on the details of the loan.

The first tranche of P38.8 billion was secured in March 2018, followed by the second tranche of P94.1 billion in February 2022. Discussions for the fourth and fifth tranches, totaling P151.1 billion, are ongoing.

“Today marks the first of many visits by the Department of Finance to ensure that projects funded by official development assistance from our international partners are moving efficiently for the benefit of the Filipino people,” Recto said in his message during a press briefing at the East Valenzuela Depot.

The awarding of contracts for the remaining sections of the MMSP has been postponed to the third quarter of 2024, according to Transportation Secretary Jaime Bautista.

The Department of Transportation originally planned to award contracts for the MMSP packages during the current quarter.

The subway spans 33 kilometers with 17 stations, extending from Valenzuela City to Bicutan in Taguig, and includes a spur line to Ninoy Aquino International Airport Terminal 3.

Anticipated to launch in 2029, the subway is poised to slash the travel time from Valenzuela to NAIA from one hour and 30 minutes to just 35 minutes. Once fully operational, the subway can accommodate 519,000 passengers daily.

With a projected total cost of P488.5 billion, funding for the project will predominantly come from a P370.7 billion official development assistance loan provided by the Japan International Cooperation Agency, while the Philippine government will shoulder P117.7 billion.

READ: Japan PM vows continued support for PH infra projects