MANILA, Philippines — Foreign Affairs Secretary Teddy Locsin and Japanese Ambassador to the Philippines Koshikawa Kazuhiko on Tuesday (July 27) signed the exchange of notes for the official development assistance (ODA) loan for the Metro Manila Subway project.
The loan was an additional amount of JPY253 billion or P116 billion loan package to finance the project’s construction.
This second tranche of the project’s ODA loan has an interest rate of 0.10% per annum, payable for 40 years with a 13-year grace period.
This follows the first tranche amounting to JPY104.530 billion or around P64 billion of the ODA loan for the subway project.
The first tranche was signed on November 13, 2017.
“The Metro Manila Subway will be a shining monument, better yet a state of the art working system attesting to the deep friendship between the Philippines and Japan. Japan holds a pre-eminent role in our government’s infrastructure development agenda, which is a priority of President Duterte’s administration,” Secretary Locsin said.
Locsin lauded the cooperation of various government agencies in the project which include the Department of Finance (DOF); the National Economic and Development Authority (NEDA); the Department of Transportation (DOTr).
The signing of the agreement coincides with this year’s 65th Anniversary of the normalization of Diplomatic Relations and 10th Anniversary of Strategic Partnership between Japan and the Philippines.
“This signing will deepen and strengthen the cooperation and partnership of both countries, and I am happy to sign this Exchange of Notes today,” Ambassador Koshikawa said.
The 33-kilometer Metro Manila Subway Project will have 17 stations and aims to cut travel time from North Avenue in Quezon City to the Ninoy Aquino International Airport (NAIA) from 1 hour and 10 minutes to just 35 minutes.
It will traverse the cities of Valenzuela, Quezon City, Pasig, Makati, Taguig, Parañaque and Pasay.
The line will have an initial capacity of up to 1 million passengers per day.
The Metro Manila Subway system is a Build Build Build flagship infrastructure project of the Duterte Administration.