Funding commitments for the Metro Manila Subway Project (MMSP) that were signed and exchanged between Japan and the Philippines during the 31st Asean Summit represent just part of the total amount pledged by Tokyo, the Department of Transportation (DOTr) said on Thursday.
In a statement, the DOTr said the “exchange of notes, signed [on]the sidelines of the Asean Summit, and the loan agreement that will be signed in January 2018 for JPY104.53-billion, represent the first tranche of the total amount pledged by Japan for the MMSP.”
“The exchange of notes and loan agreements for subsequent tranches will be signed as the project advances in implementation,” it added.
The MMSP, which will connect Quirino Highway in Quezon City to the Ninoy Aquino International Airport (NAIA) complex in Parañaque City, costs approximately JPY800 billion (P356 billion).
Japanese Prime Minister Shinzo Abe has committed to President Duterte that Japan would provide JPY600 billion.
The loan will have an interest of 0.10 percent per annum payable in 40 years, with a grace period of 12 years.
The DOTr is pushing for a partial operation of the MMSP in 2022 and its full implementation in 2025.
According to the DOTr, the subway will have water-stop panels, doors, a high-level entrance for flood prevention, earthquake detection, and a train-stop system similar to that in Tokyo.