METRO MANILA SUBWAY. Department of Transportation Secretary Jaime Bautista (2nd from left) and Finance Secretary Ralph Recto (3rd from right) on Monday (Feb. 26, 2024) hold a press briefing at the Metro Manila Subway East Valenzuela Depot located at the Mindanao Avenue Extension, Valenzuela City. DOTr Undersecretary Jeremy Regino (left), JICA Chief Representative Takema Sakamoto (2nd from right) and DOTr Undersecretary Anneli Lontoc also joined the briefing. (PNA photo by Anna Leah Gonzales)
MANILA – Finance Secretary Ralph Recto said the third tranche of the loan agreement with the Japan International Cooperation Agency (JICA) for the Metro Manila Subway is expected to be secured by March this year.
"The DOF (Department of Finance) is fully committed to securing the funding for this project. We aim to finalize the loan agreement for the third tranche of financing by March 2024," Recto said during the ocular visit and press briefing on the Metro Manila Subway in Valenzuela on Monday.
The 33-kilometer Metro Manila Subway is currently being supported by two active loan agreements from JICA.
The first tranche (PHP38.8 billion) was signed on March 16, 2018 while the second tranche worth PHP94.1 billion was signed on Feb. 10, 2022.
The project is expected to enter into a third tranche agreement with a loan amount of PHP55.7 billion by March 2024.
The fourth and fifth tranches worth a combined PHP151.1 billion are still under discussion.
Recto said that once completed by 2029, the 17-station subway line will cut the travel time from Valenzuela to Ninoy Aquino International Airport from the current one hour and 30 minutes to only 35 minutes.
The project is expected to benefit 500,000 commuters every day.
The subway will start from Valenzuela, pass through Quezon City, Pasig City, Makati City, and Ninoy Aquino International Airport and Bicutan.
"In addition to sparing our people from the burdens of commuting, the subway will also spur more businesses and create more job opportunities. The construction of the massive project has already generated 5,469 jobs for both skilled and unskilled workers providing a vital boost to our labor market," Recto said.
He said more than 5,500 workers will benefit from employment opportunities once the subway fully operates in 2029.
"The Metro Manila Subway’s direct economic benefits will allow us to save about 2.5 billion pesos daily or 930.26 billion pesos annually through reduced vehicle costs, travel time, and carbon emissions. The subway system alone will significantly mitigate economic losses caused by traffic congestion in the metro," Recto said.
Department of Transportation (DOTr) Secretary Jaime Bautista said that overall, the project is now 40 percent complete.
Bautista said at present, there are five tunnel boring machines.
"And we're expecting more this year. Two are already in North Avenue. And we may start the operations of these tunnel boring machines by next week," he said.
Bautista said the DOTr also expects to award all contract packages for the Metro Manila Subway by the third quarter of the year.
"There are still three packages that we are initiating with, that we are procuring. And we're hoping to do the procurement or to award it by third quarter of this year," he added. (PNA)
