Japan agrees US$2.1 billion loan with the Philippines for Metro
28 February 2022
The Government of the Republic of the Philippines has reached an agreement with the Japan International Cooperation Agency (JICA) for a loan of up to JPY253.3 billion (US$2.1 billion) to support phase 1 of the Metro Manila Subway Project in the Philippines.
The planned project will construct 15 stations stretching 27km underground to connect Valenzuela City, in the Northern part of Metro Manila, to Pasay City in the South.
The main contractor for the work will be a Japanese company, or its overseas subsidiary, or a joint venture with a Philippine partner.
The new Metro will help to meet the increasing need for transportation of the growing city and reduce traffic congestion in Manila.
The loan will be used to build stations, underground tunnels and other public works, in addition to the procurement of rail systems and consulting services.
This loan agreement follows Japan’s first tranche funding of JPY104.53 billion (US$900 million) that was signed in March 2018.
It is currently estimated that work should be completed by November 2027.