MANILA – The Philippines and Japan signed Friday the exchange of notes for the 17.4 billion yen loan that would finance the second phase of the MRT-3 rehabilitation.
Signing for Japan is Chargé d'Affaires ad interim Kenichi Matsuda of the Embassy of Japan and Foreign Affairs Secretary Enrique Manalo for the Philippine side.
For the project's second phase, Japan will assist the rail line's continued maintenance and will connect it to the Common Station for passengers’ seamless transfer to the LRT-1, MRT-7 and the Metro Manila Subway, according to a news release by Japan Embassy.
This project is expected to improve passenger convenience and promote the use of public transportation, contributing to sustained economic growth and reducing environmental burdens.
MRT-3 is the major elevated railway line that runs along EDSA, Metro Manila’s busiest route.
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.
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.
The loan's terms and conditions include an interest rate of 0.1 percent per annum (0.01 percent per annum for consulting services) for a repayment period of 40 years, including a 10-year grace period. (PNA)