The Japanese Minister for Foreign Affairs Taro Kono has expressed the intention of Japan to extend official development assistance (ODA) loan financing, subject to the necessary Japanese and Philippine Government approval processes, for the rehabilitation of MRT-3 and additional financing for New Bohol Airport.
This was conveyed by Kono to Foreign Affairs Secretary Alan Peter S. Cayetano during their meeting on June 20 in Tokyo, Japan.
Japan is willing to provide 38.101 billion yen or approximately 18.4 billion pesos for the rehabilitation and maintenance of the MRT Line -3 railway.
The Japanese Ministry of Foreign Affairs (MOFA) said in response to a request from the Government of the Philippines, Japan will provide the funds necessary to rehabilitate the MRT Line 3 appropriately and utilize the technology of Japan to upgrade the line to quality infrastructure, thereby improving the safety and comfort of the railway.
“It is expected that due to the rehabilitation of the MRT3 Line, approximately twice as many trains as currently will run appropriately by 2022 (two years after the completion of the project), greatly improving their transport volume, alleviating the serious traffic congestion in Metro Manila, and contributing to the alleviation of air pollution and climate change,” it added.
Moreover, the Japanese government is also willing to extend additional loan for the New Bohol (Panglao) Airport amounting to 4.376 billion yen or approximately 2.1 billion pesos. Japan already provided 10.7 billion yen for the construction of said airport in 2013.
Japan’s loan terms involves interest rate of 0.1% per annum, repayment period of 28 years after the grace period of 12 years, and Special Terms for Economic Partnership.
“Based on this pledge, the Government of Japan and the Government of the Philippines are scheduled to sign exchange of notes concerning the yen loans in the future,” the Japanese MOFA said.