Japan extends PH P6.9-B loan for MRT-3 rehab
Published May 26, 2023 08:19 am
The Philippines has signed an agreement with Japan to loan a maximum amount of P6.9 billion (17.4 billion yen) for the rehabilitation of the Metro Rail Transit Line 3 (MRT-3).
Department of Foreign Affairs (DFA) Secretary Enrique Manalo and Japanese Embassy in Manila Chargé d'Affaires ad interim Kenichi Matsuda signed on Friday the exchange of notes for the yen loan that will finance the Phase 2 of the project.
Photo courtesy of Japanese Embassy in Manila
According to the embassy, Japan will assist the MRT-3's continued maintenance through the second phase of its rehabilitation. It will also connect the train line to the Common Station "for passengers' seamless transfer to LRT-1, MRT-7 and the Metro Manila Subway," the embassy added. "This Phase 2 project is expected to improve passenger convenience and promote the use of public transportation, contributing to sustained economic growth and reducing environmental burdens," it also said. The terms and conditions of the deal are as follow: • Maximum Loan amount: 17.3999 billion Japanese Yen • Interest rate: 0.1 percent per annum (0.01 percent per annum for consulting services) • Repayment period: 40 years (including a 10-year grace period) • Financing terms: Japan-tied In entering into the loan with Manila, Tokyo noted that "in the past, the line's railroad and rolling stock deteriorated due to a lack of proper maintenance, resulting in reduced transportation capacity and frequent operational problems." "Accordingly, drastic rehabilitations were carried out as part of the Phase 1 project, restoring the line’s safety, comfort, and high speed using Japanese knowledge and technology," it added.
Photo courtesy of Japanese Embassy in Manila
According to the embassy, Japan will assist the MRT-3's continued maintenance through the second phase of its rehabilitation. It will also connect the train line to the Common Station "for passengers' seamless transfer to LRT-1, MRT-7 and the Metro Manila Subway," the embassy added. "This Phase 2 project is expected to improve passenger convenience and promote the use of public transportation, contributing to sustained economic growth and reducing environmental burdens," it also said. The terms and conditions of the deal are as follow: • Maximum Loan amount: 17.3999 billion Japanese Yen • Interest rate: 0.1 percent per annum (0.01 percent per annum for consulting services) • Repayment period: 40 years (including a 10-year grace period) • Financing terms: Japan-tied In entering into the loan with Manila, Tokyo noted that "in the past, the line's railroad and rolling stock deteriorated due to a lack of proper maintenance, resulting in reduced transportation capacity and frequent operational problems." "Accordingly, drastic rehabilitations were carried out as part of the Phase 1 project, restoring the line’s safety, comfort, and high speed using Japanese knowledge and technology," it added.