Neda Board extends validity of Japanese funds for LRT projects

The National Economic and Development Authority (Neda) Board has allowed a longer period for agencies to avail of Japanese financing for Light Rail Transit (LRT) extension projects.

In a text message last week, Acting Neda Secretary Karl Kendrick Chua confirmed it was among the items recently approved through ad referendum by the members of the Neda Board chaired by President Duterte.

Earlier Neda documents showed the Department of Transportation had sought to extend until November 2023 the validity of the P20.91 billion in official development assistance (ODA) provided by Japan for two LRT projects after lapsing in November last year.

The Japanese-funded Capacity Enhancement of Mass Transit Systems in Metro Manila Project covered some contracts in the construction of the P61.53-billion LRT Line 1 South Extension as well as the P9.76-billion LRT Line 2 East Extension.

In particular, the loan proceeds financed rolling stock procurement and installation of facilities for the LRT lines being extended to the provinces of Cavite down south and Rizal east of Metro Manila.

Both projects are part of the 104 projects in the pipeline of President Duterte’s “Build, Build, Build” program, which also underwent a review in light of the COVID-19 pandemic.

Chua did not disclose the other projects that the Neda Board recently granted its go-ahead, only saying that these would be announced soon.

As of November last year, eight projects funded by the national budget and ODA were pending approval by the Investment Coordination Committee-Cabinet Committee cochaired by Chua and Finance Secretary Carlos Dominguez III.The Updated Philippine Development Plan 2017-2022—the Duterte administration’s medium-term socioeconomic blueprint to ultimately reduce poverty and recover from the socioeconomic ills inflicted by COVID-19—is also awaiting Neda Board approval. INQ