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PH, Japan to sign MRT rehab loan deal before end of October

By Aerol John Pateña

October 25, 2018, 12:34 pm

MANILA -- The Philippines and Japan are set to sign a loan agreement for the rehabilitation of the Metro Rail Transit Line-3 (MRT-3) before the end of this month.

This will pave the way for the entry of a Japanese maintenance provider that will take over the railway system’s maintenance and rehabilitation, according to the Department of Transportation (DOTr).

The Japan International Cooperation Agency (JICA) has offered to provide a loan amounting to 38 billion yen or PHP18 billion for the MRT rehabilitation.

“Before the end of October, a loan agreement will be signed by the Philippines and Japan for the complete rehabilitation of MRT-3. Once the loan agreement is signed, the Japanese maintenance provider will take over but this will not be immediately as it will undergo a transition period,” DOTr communications director Goddes Hope Libiran said in a text message to the Philippine News Agency (PNA) late Wednesday.

The department has earlier said that it is eyeing Japanese company Sumitomo-Mitsubishi Heavy Industries Ltd. as maintenance provider for the MRT.

In August, the National Economic and Development Authority Board’s Investment Coordination Committee-Cabinet Committee has approved the PHP22.061-billion MRT maintenance project.

The rehabilitation will increase the number of train sets in operation from 15 to 18 train sets per hour, increase the maximum speed to 60 kilometers per hour and decrease headway to 200 seconds.

The DOTr, through the Philippine National Railways, is likewise conducting testing runs of the 48 trains that were purchased from Chinese firm CCRC Dalian to determine if these are safe for public use.

The PNR will then recommend whether the train sets are suitable for revenue service or there is still a need for CCRC Dalian to make adjustments.

CCRC Dalian has earlier said it has agreed to shoulder the costs of the modifications on the trains.

The findings of an audit conducted by independent audit and assessment consultant, TUV Rheinland, earlier this year showed that the weights and measurements of the Dalian trains did not comply with DOTr's terms of reference. (PNA)

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