THE Philippine government has signed two new loan agreements yesterday worth roughly P98 billion, funded by Japan to cover the construction of a long-haul railway in Luzon and a flood management project covering the Pasig and Marikina rivers.
Finance Secretary Carlos G. Dominguez III signed the loan agreements with Shigenori Ogawa, director general of the Japan International Cooperation Agency (JICA) on Monday afternoon. This will support the first segment of the North-South Commuter Railway (NSCR) extension project and the fourth phase of the Pasig-Marikina River Channel Improvement Project.
JICA has lent P80.47 billion to the Philippines, representing the first tranche of the entire NSCR project funding expected to cost a total of P628.42 billion. Of this, about P488 billion will be co-financed by JICA and the Asian Development Bank while the government will put in about P140 billion.
The new line of the Philippine National Railways will extend train services from the Clark International Airport in Pampanga to Manila and all the way to Calamba, Laguna. The first tranche will support the construction of elevated structures, seven stations and a train depot, according to the Transportation department.
The ongoing construction of the Malolos-Tutuban line is also supported by JICA funding.
Mr. Dominguez said the NSCR is the biggest project so far under the “Build, Build, Build” program of the Duterte administration. The 147-kilometer (km) rail line will cut travel time from Northern to Southern Luzon to 1.5 hours from the current five hours by bus.
The railway segment is expected to be running by 2022, Transportation Undersecretary Timothy John R. Batan said during the signing ceremony yesterday at the DoF headquarters in Manila. This will involve partial operations from Clark to Blumentritt in Manila, while full service is slated by April 2023.
Mr. Batan added the 38-km Malolos-Tutuban segment will start construction next month, while the other stretch is expected to break ground by the third quarter.
JICA’s Mr. Ogawa said Japan is looking to help address “heavy traffic congestion” in Metro Manila, citing a recent JICA study that the gridlock is costing the country P3.5 billion per day.
On the other hand, the new phase of the Pasig-Marikina River Channel Improvement Project worth about P18 billion will build two floodgates in Cainta and Taytay, Rizal, and will also build new control gates along Manggahan Floodway using Japanese technology. It is scheduled to be completed by 2027, Mr. Dominguez added.
Both loans come with low interest rates, set at 0.1% per annum for non-consulting services and 0.01% for those involving consulting services. The loans are payable in 40 years with a 12-year grace period.
Mr. Dominguez noted that the loan deals were finalized within two months after the President’s approval of these projects, the fastest on record. This is also the third train line supported by JICA.
Also expected to be signed within the quarter is funding to develop road networks in conflict-affected areas in Mindanao.
Other big-ticket loans previously granted by Japan include P49.82 billion for the Metro Manila Subway linking Mindanao Avenue in Quezon City to the Ninoy Aquino International Airport in Parañaque, the P18.16-billion loan line for the rehabilitation of the Metro Rail Transit line 3, and the P2.1 billion supplemental loan for the Panglao International Airport project in Bohol. — Melissa Luz T. Lopez
