FRIDAY, March 29, 2024
nationthailand

RP eyes biggest Japan loan for its first subway

RP eyes biggest Japan loan for its first subway

THE PHILIPPINE government is looking to secure its biggest-ever official development assistance (ODA) loan from Japan for the country’s first subway system, which will serve Metro Manila and surrounding areas.

Philippine Socioeconomic Planning Secretary Ernesto Pernia said an estimated US$4.4 billion (Bt149 billion) in ODA from the Japan International Cooperation Agency (Jica) was in the pipeline to finance the Mega Manila Subway Project.
To date, the largest ODA loan package provided by Jica to the Philippines was 241.9 billion yen, or almost $2.42 billion, for the $2.88-billion North-South Commuter Railway Project that would connect Tutuban in Manila to Malolos district in Bulacan province.
Pernia, who also heads state planning agency the National Economic and Development Authority (Neda), said it was hoped that the signing of the fresh ODA agreement for the ambitious subway project would be in November, when Japanese Prime Minister Shinzo Abe is due to attend the Asean Summit in the Philippines.
Neda under-secretary Rolando Tungpalan said the loan amount would be finalised upon the completion of the project feasibility study by next month.
Tungpalan said the project and its planned ODA financing were of “high priority and will be tackled in a high-level bilateral meeting in July”.
Tetsuya Yamada, Jica senior representative in the Philippines, confirmed that the project was still in the final process of the feasibility study, with the project cost and financing plan “yet to be examined closely”.
Yamada said it would be up to the Philippine government to decide if it would seek a loan from Jica for the subway.
 

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