Subway secures P116B in new loan
Second tranche of the project’s ODA loan, which has 0.10 percent interest rate per year, has a term of 40 years to pay with 13 years grace
The Department of Transportation (DoTr) has formally signed an additional P116 billion loan for the financing of the country’s first underground train line, or the Metro Manila Subway Project (MMSP).
Foreign Affairs Secretary Teodoro Locsin Jr. and Japan Ambassador to the Philippines Koshikawa Kazuhiko signed the exchange of notes for the official development assistance (ODA) loan.
The second tranche of the project’s ODA loan, which has 0.10 percent interest rate per year, has a term of 40 years to pay with 13 years grace.
This follows the first tranche of P48.08 billion in ODA loan for the same project. The formal agreement for this financing was signed on 13 November 2017.
Shining dev’t monument
“The Metro Manila Subway will be a shining monument, better yet a state-of-the-art working system attesting to the deep friendship between the Philippines and Japan. Japan holds a pre-eminent role in our government’s infrastructure development agenda, which is a priority of President Duterte’s administration,” Locsin said.
“I also laud the hard work put in by various Philippine agencies — the Department of Finance, the National Economic and Development Authority, the Department of Transportation, and Secretary Art Tugade (in my long experience the best, most achievement-laden Cabinet Secretary I’ve ever known) — which ensured the realization of this project,” he added.
Meanwhile. Ambassador Koshikawa said the recent signing will “deepen and strengthen the cooperation and partnership of both countries.”
The 33-kilometer MMSP will have 17 stations and aims to cut travel time from North Avenue in Quezon City to the Ninoy Aquino International Airport from 1 hour and 10 minutes to just 35 minutes.
It will traverse the cities of Valenzuela, Quezon City, Pasig, Makati, Taguig, Parañaque and Pasay. The line will have an initial capacity of up to 1 million passengers per day.