Prime Minister Shinzo Abe. AP FILE PHOTO/Junji Kurokawa
The Philippines is set seal within the current quarter a loan deal for the initial funding for the Metro Manila Subway Project, along with the agreement for the Plaridel Bypass Road in Bulacan — both financed by Japan.
According to the Department of Finance, the contract for the initial tranche of the 104.5 billion yen ($929.1 million at current exchange rates) loan for the first phase of the subway project, and the 9.399 billion yen ($89 million) loan accord for the third phase of the Plaridel Bypass Road Project in Bulacan may be signed on the last week of January 2018.
This is once the Philippine government secures the approval of the Monetary Board and the special presidential authority for these agreements, a statement from the Finance department explained.
The 15.928 billion yen ($142 million) loan agreement for the flood risk management project in the Cavite industrial area, meanwhile, is targeted for the Monetary Board’s final approval, with the effectivity of the loan targeted on the first week of February 2018, according to DOF’s International Finance Group in its report to Finance Sec. Carlos Dominguez III.
President Duterte and Japan Prime Minister Shinzo Abe witnessed the ceremonial exchange of the signed loan agreement for the Cavite flood risk management program, and the exchange of notes for the Metro Manila Subway and the Plaridel Bypass Road Project on the sidelines of the 31st Asean Summit last November 2017.
Dominguez and Japan International Cooperation Agency (Jica) chief representative to the Philippines Susumu Ito signed the loan agreement for the Cavite Industrial Area Flood Risk Management Project, which will be implemented by the Department of Public Works and Highways.
The project, which aims to control and mitigate flooding in several areas in Cavite that host economic zones and residential communities, stands to benefit some 8,000 households as well as manufacturing plants in the cities of General Trias and Imus and the municipalities of Kawit, Noveleta and Rosario in the province.
According to the DOF, the Cavite flood management project was among the big-ticket infrastructure flagship projects approved in June 2017 by the Investment Coordination Committee-Cabinet Committee and the National Economic and Development Authority board chaired by President Duterte.
The Cavite project was recommended for official development assistance funding from Japan by the DOF last July 18 and received an official pledge from the Japanese government on August 8, the report said.
It involves the construction of flood protection measures in the San Juan River and Maalimango Creek Drainage Area of Imus.
The Plaridel Bypass Road Project involves the construction of a 24.61-kilometer arterial road that will link the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway (or the Maharlika Highway) in San Rafael, Bulacan to help alleviate traffic congestion at the core urban areas along the highway.
Meanwhile, the first phase of the Metro Manila Subway project will run from Mindanao Ave. in Quezon City through the FTI in Taguig City and end at the Ninoy Aquino International Airport in Paranaque City. The subway will help decongest traffic on Edsa and connect major business centers in Metro Manila to the country’s premier international gateway.