The Philippine government and Japan government signed a loan agreement for the rehabilitation of Metro Rail Transit (MRT) Line 3 on Friday, May 26.

In a press statement, the Department of Finance (DOF) said its Secretary Benjamin Diokno represented the national government and signed the MRT-3 Rehabilitation Project (II) loan agreement worth ¥17.4 billion or an estimated $130 million with Japan International Cooperation Agency (JICA) Chief Representative in the Philippines Sakamoto Takema.

It said that the loan agreement has low interest of 0.10 percent annually for non-consulting services and 0.01 percent for consulting services, to be returned over 40 years, including a 10-year grace period.

According to DOF, the National Economic and Development Authority (NEDA) Board initially approved the MRT-3 rehabilitation plan last August 22, 2018, and the $130 million supplemental loan on February 2 this year.

The NEDA approved the said loan to fund the increase of ₱29.6 billion in the total project cost, following the additional scope of work submitted by the Department of Transportation (DOTr).

As of March 2023, DOF said Japan is the country's leading Official Development Assistance (ODA) partner.

With the signing of the loan agreement, Japan's entire loan net commitment now stands at US$10.3 billion, with a total ODA commitment of US$10.5 billion.

Transportation Assistant Secretary Jorjette Aquino and Undersecretary Reinier Paul Yebra, along with Economic Minister Nihei Daisuke and Embassy of Japan to the Philippines Chargé d’Affaires ad interim Matsuda Kenichi, witnessed the ceremonial signing of the loan agreement.

MRT 3 is a 16.9km mass rail transit system with 13 stations running from North Avenue in Quezon City to Taft Avenue in Pasay City along the EDSA Corridor.

Written By Dana Ebreo, DZRH News Online Intern