Japan consortium wins bid to build P11-billion Metro subway

MANILA, Philippines — A consortium of six Japanese companies has bagged the P11-billion contract to build the Metro Manila Subway, the Department of Budget and Management (DBM) said yesterday.

In a press briefing, Budget Secretary Benjamin Diokno said Japanese consortium OCGlobal won the bidding for the construction of the country’s first ever subway system.

“The winning bidder is OCGlobal, consisting of six Japanese firms,” Diokno said.

The consortium is composed of the Oriental Consultants Global Co. Ltd.,Tokyo Metro Co. Ltd., Katahira & Engineers International, Pacific Consultants Co. Ltd., Tonichi Engineering Consultants Inc., and the Metro Development Co. Ltd.

The contract involves a total amount of P11 billion, divided in three currencies – ¥7.97 billion, $79.73 million, and P3.58 billion.

The Metro Manila Subway Project is one of the biggest projects of the Duterte administration under its Build Build Build program.

Last March, the Philippines and Japan International Cooperation Agency (JICA) signed the ¥104.53 billion loan agreement for the first phase of the  project.

The loan carries an interest rate of 0.1 percent per annum for non-consulting services and 0.01 percent per annum for consulting services, with a repayment period of 40 years, inclusive of a 12-year grace period.

With the completion of the loan agreement, the government is expecting to conduct the ground breaking ceremony for the project before the end of the year.

The first phase, which has a total project cost of P356.96 billion, covers the central zone, and involves the construction of about 30 kilometers of underground railway from Mindanao Avenue to the Ninoy Aquino International Airport. It will have 14 stations and possibly one or to more extension stations.

It also includes a depot in Valenzuela, electro-mechanical systems and rolling stock, and the establishment of a Philippine Railway

Institute. Dominguez said the stations will also have commercial components and retail areas to add value to the property.

 In its entirety, the subway project envisioned by the government will also include a north zone which will be extended to Bulacan, and a south zone that will extend to Cavite.

The Department of Finance earlier said the government is targeting to begin operation of the first three of the subway stations – Mindanao Avenue-Quirino Highway, Tandang Sora, And North Avenue – by May 2022.

The entire Central Zone is expected to be operational by 2025, including the commercial space for the subway stations that will help defray the cost of operating this facility.