PH inks loan deal for subway project

THE Philippines and Japan on Fri - lion (about $935 million) loan tranche of Tokyo’s commitment to the Metro Manila Subway project.

The loan, which the country is expected to repay over 40 years with a 12-year grace period, carries interest rates of 0.10 and 0.01 percent per year, respectively, for non- consulting and consulting services.

Finance Secretary Carlos Dominguez, in his remarks during the signing ceremony, noted that the subway project was so far the biggest under the Duterte government’s “Build Build Build” program.

to cost $7.05 billion for the Central Zone component, which comprises the construction of around 30 kilometers of railway with 14 stations and a possible oneto two- station expansion from Mindanao Ave. in Quezon City to the Ninoy Aquino International Airport in Pasay City.

The project also includes the construction of a depot in Valenzuela, installation of electromechanical systems and rolling stock, and the establishment of a Philippine Railway Institute (PRI).

“The Institute will provide training as well as do research

and development on regulation, train operations and maintenance. This will build a corps of expert train personnel to manage not only the subway system but all the commuter rail lines of the country. It is about time that our commuter lines be run by real experts,” Dominguez said.

A detailed engineering design, which will include flood management and the latest seismic technologies, is currently being drafted.

- pected to be operational in May 2022. The Central Zone is targeted to be fully operational by 2025.

Subsequent expansions call for a North Zone that will extend to Bulacan and a South Zone running to Cavite.

- ceeding administrations will get this done,” Dominguez said.

The Finance chief touted the government’s quick procession of the loan, saying that approvals only took six months starting from the National Economic and Development Authority Board’s go-signal last September.