To accelerate the country’s progress toward upper middle-income status, the Philippine government has secured roughly ₱82.4 billion (221.7 billion Japanese yen) in financing from the Japan International Cooperation Agency (JICA) for two landmark infrastructure projects.

Finance Secretary Frederick D. Go said in a statement that the two funding supports focus on improving urban mobility and unlocking the potential of regional economies.

This financing deal, signed on March 27, is designed to drive economic transformation by improving urban mobility and unlocking the economic potential of regional corridors.

The majority of the funds, totaling 220 billion Japanese yen (around ₱81.8 billion), serves as the fourth tranche for the Metro Manila Subway Project (MMSP) Phase 1.

As the nation’s first underground railway, the MMSP will span 33 kilometers with 17 stations from Valenzuela City to Parañaque City, including a link to Ninoy Aquino International Airport (NAIA) Terminal 3.

Once operational, it is expected to reduce travel time across the route from 70 minutes to just 45 minutes. The loan covers civil works, the procurement of rolling stock, and the integration of advanced disaster prevention and safety features.

JICA Senior Vice President Hayakawa Yuho said in a statement that the latest official development assistance (ODA) of Japan to the Philippines aims to fast-track the country’s income class upgrade.

“Infrastructure development is a key driver for economic transformation, and we sincerely hope that the two loan agreements signed today will contribute to accelerating the Philippines’ progress toward upper middle–income country status,” Yuho said.

The remaining 1.67 billion Japanese yen (around ₱622 million) is allocated for engineering services for the Central Mindanao High Standard Highway (CMH).

This funding will support the detailed design and preparatory works for the Cagayan de Oro–Malaybalay section, a 12-kilometer stretch designed to High Standard Highway (HSH Class 1) specifications.

The project aims to improve food security and regional trade by reducing travel times between these key cities—potentially cutting a 6.5-hour journey to 3.5 hours.

“This will guarantee that the project is safe, cost-effective, and built to the highest technical standards, helping prevent wasteful construction and minimize risks even before construction begins,” the DOF said.

By modernizing transport systems, these projects are intended to lower the cost of doing business and foster inclusive and sustainable economic growth across the archipelago.

JICA said it “remains committed to working with the Philippines to improve transport systems, enhance connectivity, and expand opportunities for communities across the country.”