Japan may lend $346M for MRT-3
JAPAN is considering a 38.101 billion-yen (about $346 million) official development assistance (ODA) loan for the rehabilitation of Metro Rail Transit (MRT)-3, and an additional 4.37 billion yen for the ongoing construction of the New Bohol Airport.
The Department of Finance (DoF) said in a statement over the weekend that Japan has expressed its intention to provide the new loan packages during the fifth meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation on June 20 in Tokyo.
“Finance Secretary Carlos G. Dominguez III said that during the 5th meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation, Japanese officials expressed their government’s intention to provide indicative official development assistance (ODA) loan financing of about 38.1 billion yen for the MRT Line 3 Rehabilitation Project and an indicative supplemental loan of some 4.37 billion yen for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project ‘subject to the necessary Philippine and Japanese Government approval processes,’” the DoF statement read.
According to the Ministry of Foreign Affairs of Japan, about twice as many trains in the 17-kilometer railway should be operational by 2022 after the rehabilitation period.
The Department of Transportation (DoTr) said the Philippine and Japanese governments started negotiations and feasibility studies for the MRT rehabilitation in January, after both parties exchanged notes on the ODA terms.
Meanwhile the new ODA loan for Phase 2 of the New Bohol Airport — which is expected to be completed this month — will meanwhile cover the increase of construction costs due to “the subsequent large currency exchange rate fluctuations and other factors.”
This will supplement the 10.7 billion-yen loan Japan provided in 2013.
Both loans will have an interest cost of 0.1% per annum, payable in 28 years with a 12-year grace period, and will require the participation of Japanese contractors.
Both countries also firmed up the proposed pipeline of infrastructure projects to be built with Japanese assistance. These include the: Malolos- Clark Philippine National Railways (PNR) North 2 Project; the Tutuban-Laguna PNR South Commuter Line; the PasigMarikina River Channel Improvement Project; and the Road Network Development Project in Conflict-Affected Areas in Mindanao. —