Loan signing for Metro Manila subway, Bulacan bypass road eyed in Q1

MANILA, Philippines — The government is targeting to sign before the end of January the loan agreements for Japan's funding assistance on the Metro Manila Subway Project and the Plaridel Bypass Road, the Department of Finance (DOF) said yesterday.

In a statement, the DOF said it is awaiting the approval of the Monetary Board and the issuance of the Special Presidential Authority for the ¥104.5 billion (approximately $929.1 million) loan assistance from Japan for the first phase of the Metro Manila Subway Project, as well as the ¥9.399 billion ($89 million) loan accord for the third phase of the Plaridel Bypass Road Project in Bulacan.

President Duterte and Japan Prime Minister Shinzo Abe witnessed the exchange of notes for the Metro Manila Subway Project and the Plaridel Bypass Road Project on the sidelines of the 31st ASEAN Summit and Related Meetings in Manila.

Foreign Affairs Secretary Alan Peter Cayetano and Japanese Ambassador Kojie Haneda signed the exchange of notes.

According to the DOF, 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 (Maharlika Highway) in San Rafael, Bulacan.

The project is expected to help alleviate the perennial traffic congestion at the core urban areas along the highway.

For its part, the first phase of the Metro Manila Subway project will run from Mindanao Avenue in Quezon City through the FTI in Taguig City and end at the Ninoy Aquino International Airport in Parañaque City.

The subway will help decongest traffic in EDSA and connect major business centers in Metro Manila to NAIA, the DOF said.

Meanwhile, the DOF's International Finance Group said the government is also waiting for the Monetary Board's final approval for the ¥15.928 billion loan agreement for the flood risk management project in the Cavite industrial area.

Finance Secretary Carlos Dominguez and Japan International Cooperation Agency (JICA) chief representative to the Philippines Susumu Ito signed the loan agreement for the project last November.

The project aims to control and mitigate flooding in several areas in Cavite that host economic zones and residential communities and 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, the DOF said.

It involves the construction of flood protection measures in the San Juan River and Maalimango Creek Drainage Area of Imus.