Japan International Cooperation Agency (JICA) is providing a ¥253.307 billion ($2.16 billion) loan for the 27km Metro Manila subway phase 1. 

JICA yesterday (10 February 2022) signed a loan agreement with the Philippines government to provide the second tranche of the ODA loan. 

The Metro Manila subway will connect Valenzuela City in northern Metro Manila to Pasay City in the south, with a scheduled commercial operations date by 2027. The total project cost is about ¥1.078 trillion.

The loan has a 40-year repayment period and a 13-year grace period. The annual interest rate for the project is 0.1%, and consulting services is 0.01%

The loan supports:

• construction of stations, underground tunnels, depot, and other public works
• procurement of rail systems and rolling stock
• consulting services

The loan entails special terms for economic partnership, which transfers Japanese technology and expertise to developing nations.

The transaction follows the initial agreement signed in March 2018 for a ¥104.53 billion loan with a 40-year maturity period. 

In November 2018, the government awarded a Japanese consortium for the design and build contract. The consortium comprises: 

• Oriental Consultants Global
• Tokyo Metro
• Katahira & Engineers International
• Pacific Consultants
• Tonichi Engineering Consultants
• Metro Development