PH, Japan ink ¥400-B loan deals for North-South railway, extension projects

TOKYO — The Philippine and Japanese governments on Thursday signed fresh sets of loan financing deals for the North-South Commuter Railway (NSCR) Project and its extension.

At a ceremony with Philippine and Japanese officials at the Prime Minister's Office here, Finance Secretary Benjamin and Japan International Cooperation Agency (JICA) president Akihiko Tanaka exchanged the signed loan agreements for the NSCR-Malolos to Tutuban Project and the NSCR Extension Project.

Sought for details, Diokno told GMA News Online that the amount of loan deals sealed is worth about ¥400 billion or over P166 billion.

The Finance chief said the first loan for the NSCR Malolos to Tutuban line is worth ¥107 billion while the amount of loan inked for the NSCR Extension is ¥270 billion.

The 163-kilometer NSCR Project is composed of a 40-kilometer line from Tutuban, Manila to Malolos, Bulacan, and its extensions: Malolos to Clark, Pampanga, and Manila to Calamba, Laguna.

“It will increase the economic activity in those three regions and it will of course attract more foreign investors,” Diokno said.

The signed agreements are part of the second phase of financing deals for both projects. The first phase amounting to ¥167 billion for the NSCR Extension was signed in November 2018, while Phase 1 of the financing accord amounting to ¥241.991 billion for the NSCR Malolos to Tutuban line was signed in November 2015.

The loan agreements carry an interest rate of 0.1% per annum and another 0.1% per annum for consulting services. The repayment period is 40 years, including a 10-year grace period.

In a joint statement, President Ferdinand Marcos Jr. and Japan Prime Minister Fumio Kishida commended the signing of the exchange of notes concerning the yen loan provision for the development of the North–South Commuter Railway (NSCR) and its extension.

The entire NSCR project is seen to further strengthen the Philippines’ economic recovery from the adverse impact of the COVID-19 pandemic as it is expected to create more than 35,500 jobs during construction and over 3,200 permanent jobs during operation.

The two leaders also welcomed the progress of the Japan-funded Metro Manila Subway Project and aimed for its inauguration during the Marcos presidency. —NB/VBL, GMA Integrated News