¥114-B loan for Manila subway, Plaridel bypass road part of Japan’s ¥1-T aid package for PHL

Japan’s ¥1 trillion financial package for the Philippines includes ¥114 billion loan pledge for the Metro Manila Subway project and an arterial bypass road along the Philippine-Japan Friendship Highway in Plaridel, Bulacan.

Finance Secretary Carlos Dominguez said this in a text message on Tuesday.

According to the Ministry of Foreign Affairs of Japan, the construction of the first phase of the Metro Manila subway will amount to ¥104.53 billion and the Plaridel bypass ¥9.399 billion.

Japan’s MOFA said that both projects would relieve traffic congestion in their respective areas.

“Based on this pledge, the Government of Japan and the Government of the Philippines are scheduled to sign an exchange of notes concerning the yen loan in the future,” the MOFA stated.

The loan terms are as follows:

Metro Manila Sunway Project:

• Rate of Interest: 0.1% per annum (0.01% per annum for consulting services)
• Repayment period: 28 years after the grace period of 12 years
• Procurement terms: Japan tied

Arterial Road Bypass Project:

• Rate of Interest: 1.5% per annum (0.01% per annum for consulting services)
• Repayment period: 20 years after the grace period of 10 years
• Procurement terms: General untied

Aside from the ¥114 billion loan pledge, the Philippines and Japan also exchanged notes on the Cavite industrial area flood risk management project. It has a loan provision of up to ¥15.928 billion.

President Rodrigo Duterte and Abe witnessed Foreign Affairs Sec. Alan Peter Cayetano and Minister of Foreign Affairs Taro Kono’s exchange of notes on Monday after their summit meeting at the Prime Minister’s Office in Tokyo. — Trisha Macas/RSJ, GMA News