Subway’s 3rd tranche delivered next month

The Department of Finance, or DoF, said it aims to complete next month the third tranche of a loan agreement worth P55.7 billion for the construction of the Metro Manila Subway Project.

The project has an estimated total cost of P488.5 billion and five tranches of loan agreements.

A portion worth P370.7 billion will be loaned through the Japan International Cooperation Agency, or JICA, under the official development assistance or ODA mechanism.

The remaining P117.7 billion will be funded by the government.

“Today marks the first of many visits by the Department of Finance to ensure that projects funded by ODA from our international partners are moving efficiently for the benefit of the Filipino people,” Finance Secretary Ralph Recto said Monday in his visit to East Valenzuela depot.

It is a 30-hectare facility that provides maintenance requirements for the subway train sets.

P133B released

JICA already granted P132.9 billion for the first and second tranches.

The Philippine government expects the subway to be fully operational by 2029.

Transportation Secretary Jaime Bautista said the progress of the subway project has reached 40 percent.

“There are still three contract packages that we are procuring and we’re hoping to award by the third quarter this year,” he said.

“Overall it is 40 percent because it’s not only about construction but also design, procurement of contracts, and right of way,” he added.

Recto said the government is also ironing out right-of-way issues to ensure the subway lines will be cleared for construction activities.

“I’m confident that there are resources available to finance the right of way for this project. The DoTr requirement for the year is P30 billion,” he said.

The Metro Manila Subway will have 17 stations along a 33-kilometer route that will run from Valenzuela City to Bicutan in Parañaque City.

A study by JICA showed the Philippines loses at least P3.5 billion daily and P1.27 trillion annually from road traffic.

With the Metro Manila Subway, the government expects travel time from Valenzuela City to the Ninoy Aquino International Airport to be shorter at 35 minutes from 1 hour and 30 minutes.