Subway project to get add’l funds

THE Metro Manila subway project will get additional funding from the Japan International Cooperation Agency (JICA) amounting to P55.7 billion, Finance Secretary Ralph Recto said on Monday.

“The DoF (Department of Finance) is fully committed to securing the funding for this project,” Recto told reporters, adding that “we aim to finalize the loan agreement for the third tranche of financing by March 2024.”

Fourth and fifth tranches worth a combined P151.1 billion are still under discussion, Recto said.

The initial tranche from JICA, valued at P38.8 billion, was executed on March 16, 2018 and currently has a disbursement rate of 94.4 percent, the Finance department said.

The second tranche, signed on Feb. 10, 2022, is worth approximately P94.1 billion and currently has a disbursement rate of 29.9 percent.

The Metro Manila subway, spanning a length of 33.1 kilometers, will run from Valenzuela to the Ninoy Aquino International Airport (NAIA) through 17 stations and a depot.

The project — the country’s first mass underground transport system — broke ground in February 2019 and is expected to be partially operational next year. Full operations are scheduled for 2029.

“In addition to sparing our people from the burdens of commuting, the subway will also spur more businesses and create more job opportunities,” Recto said.

He said the project had already generated 5,169 jobs for both skilled and unskilled workers and that more than 5,500 workers would benefit from employment opportunities once the subway is fully operational.

“The Metro Manila Subway’s direct economic benefit will allow us to save about P2.5 billion daily or P930.26 billion annually through reduced vehicle cost, travel time, and carbon emission,” Recto said.

“The subway alone will mitigate economic losses caused by traffic congestion in the Metro,” he added.