By ONLINE BALITA NEWS
Finance Secretary Ralph G. Recto began his series of worksite visits on official development assistance (ODA)-funded infrastructure projects to ensure their efficient implementation, starting with the Metro Manila Subway on February 26, 2024.
“Today marks the first of many visits by the Department of Finance to ensure that projects funded by official development assistance from our international partners are moving efficiently for the benefit of the Filipino people,” he said in his message during a press briefing at the East Valenzuela Depot, which is a 30-hectare facility designed to cater to the maintenance requirements of the subway train sets.
The DOF-International Finance Group (IFG) is in charge of securing foreign grants and loans to fund the government’s infrastructure projects and various development projects as well as programs to support the country’s rapid economic growth.
The Metro Manila Subway Project Phase 1 is the country’s first-ever underground mass transport system and the third biggest project under the Marcos, Jr. administration’s Build Better More program.
The project involves the construction of a Depot and a 33-kilometer railway system consisting of 17 stations that shall connect Valenzuela City to Pasay City with a branch line going to NAIA Terminal 3 in Parañaque City.
Once operational in 2029, the subway will reduce travel time from Valenzuela to NAIA from 1 hour and 30 minutes to 35 minutes and can accommodate 519,000 passengers per day on full operations.
The project currently has an estimated total cost of PHP 488.5 billion, of which PHP 370.7 billion will be financed through an ODA loan from the Japan International Cooperation Agency (JICA), while PHP 117.7 billion will be covered by the Philippine government.
The project was approved to be financed through a time-sliced loan given its sizable scope. This is a financing modality for large-scale projects through the execution of loan agreements for each tranche.
At present, the project is supported by two active loan agreements with JICA, namely the first tranche worth JPY 104.5 billion (about PHP 38.8 billion), which was signed on March 16, 2018; and the second tranche worth JPY, which was inked on February 10, 2022.
The project is expected to enter into a third tranche agreement with a financing amount of JPY 150 billion (about PHP 55.7 billion) by March 2024.
“[T]he 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. We will also remain resolute in monitoring the progress of all ODA projects,” Recto said.
Secretary Recto cited a JICA study, which revealed that the traffic congestion in Metro Manila alone costs the Philippine economy at least PHP 3.5 billion per day or a staggering PHP 1.27 trillion annually.
This amount is expected to increase to PHP 5.4 billion daily or PHP 1.97 trillion per year by 2035 if no effective intervention is done.
Data suggests that the Metro Manila Subway project will mitigate economic losses caused by traffic congestion in the metro, allowing the country to save about PHP 2.5 billion daily or PHP 930.26 billion annually through reduced vehicle costs, travel time, and carbon emissions.
Moreover, the government has invested in cutting-edge Japanese technology and expertise to ensure that the construction of the subway is weather- and disaster-proof.
Meanwhile, JICA Philippines’ Chief Representative Sakamoto Takema said the agency is in coordination with the DOTr for an organized masterplan for the Philippines’ railway system.
“Rest assured, this administration will spare no effort in delivering top-notch infrastructure projects to modernize the Philippine mass transportation system. We are working non-stop to get all of these done as soon as possible,” he said.
“We are committed to ushering in a future where traffic no longer disrupts the lives of Filipinos—when time is not lost but savored to pursue more meaningful and productive activities. When each of us can devote quality time with our families. When we can reap the benefits of the seamless movement of goods across the archipelago to facilitate economic growth and prosperity for all,” Recto said in closing.
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