BusinessMirror

The Metro Manila Subway Project

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The London Undergroun­d began operation in 1863, making it the world’s oldest metro subway system. It is as much a part of the cultural identity of the city as “Big Ben” or Buckingham Palace. As of December 2017, 178 cities in 56 countries around the world use approximat­ely 180 metro systems. Almost all of them incorporat­e both undergroun­d and abovegroun­d railways—like the Philippine­s’s light rail systems—in their metro transporta­tion network.

However, undergroun­d transporta­tion is standard across the globe. Line 1 of the Seoul Metropolit­an Subway opened in 1974 and is considered one of the best with the highest number of passengers at nearly 3 billion riders per year. The Shanghai Metro is the longest, with 743 kilometers of track. New York City’s has the most stations.

Undergroun­d subways are operating in Dubai, Kazakhstan, Algeria, Romania, Venezuela, and even in North Korea.

The concept of an undergroun­d subway system for Metro Manila was first proposed in 1973 by the forerunner of the current Japan Internatio­nal Cooperatio­n Agency. In 1995, Bonifacio Land Developmen­t Corporatio­n, a consortium led by Metro Pacific Investment­s Corp, made a successful bid to become the Bases Conversion and Developmen­t Authority partner in the developmen­t of Bonifacio Global City (BGC), the former Fort Andres Bonifacio, site of the headquarte­rs of the Philippine Army.

After the conversion of the base for private use and ownership, another proposal was made to build a subway from Bulacan through BGC and to Bacoor. The change of ownership of BGC and the 1997 Asian Financial Crisis saw that plan shelved.

In November 2017, a loan agreement was signed between President Duterte and Japanese Prime Minister Shinzō Abe for the subway, dependent on approval by government authoritie­s. By March 2018, Japan signed the loan and in November 2018 a Japanese consortium and Metro Developmen­t Co. Ltd. got the P11 billion contract to build the line. Early in 2019, a Japanese-filipino consortium, including EEI Corporatio­n, won the design-and-build contract for the first three stations.

This past week, Transporta­tion Secretary Arthur Tugade revealed that the P355-billion Metro Manila Subway Project will partially operate to serve commuters before the end of 2021.

Ignore for a moment the economic benefits that will accrue from this new transporta­tion system. Let’s consider it only as a convenienc­e or even a luxury for Manileños. The reality is that “the country’s first subway system will be financed via Japanese Official Developmen­t Assistance, with an interest of 0.10 percent per annum, payable in 40 years, inclusive of a grace period of 12 years.” The total cost of that loan over 40 years is less than 3 percent.

But there is a risk, a potentiall­y great risk.

The reality is that both internal and external players have taken advantage of Filipinos since time immemorial. We have seen our money squandered, stolen, and put to useless purposes, the iconic “Bridge to Nowhere.” We have seen projects that started out with promise turn into a nightmare in a few short years. The Manila light-rail projects have haunted our dreams for decades.

This has been a continuing problem of “government” and not of any particular presidenti­al administra­tion.

The Metro Manila Subway is a game changer. It is highly visible, costly, and could be an exceptiona­lly positive transporta­tion system developmen­t for the NCR. Now, it is up to the government to prove itself to the people.

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