The Philippines and Japan have signed an agreement for the second tranche of the $2.3 billion loan for phase one of the Metro Manila Subway project, the Philippine Department of Foreign Affairs (DFA) has said.
Foreign Affairs Secretary Teodoro Locsin and Japanese Ambassador Koshikawa Kazuhiko exchanged signed documents for the second tranche of the loan through the Japan International Cooperation Agency.
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Locsin said the Metro Manila subway will be a “shining monument, a state-of-the-art working system” reflecting the deep “friendship” between the Philippines and Japan.
The project costing P350-billion is set to be completed in 2025 and 85 percent will be met through loan from Japan. The loan has to be paid in 40 years with a 12-year grace period and 0.1 percent interest.
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Arthur Tugade, Transportation Secretary, has said they plan to start partial operations of the subway by the end of the year with a “worst-case scenario” of delay to January or February next year.
The subway project was approved in 2014 and officials have said it will be fully operational by 2025. (AW)
