Metro Manila subway one step closer to reality
The long-awaited first underground line for Metro Manila, called Mega Manila Subway, is on the way to become reality with the first tranche of a loan for the project being in. The Philippine government and the Japan International Cooperation Agency on March 16 signed a $1-billion loan agreement as part of the funding for the construction of the subway, which is expected to significantly ease traffic gridlock in the capital.
The investment should cover the initial phase of an underground railway with a network spanning over 36 kilometers, which is estimated to eventually (with planned extensions) cost a total of $6.9 billion. Officials said the funding agreement carries an interest rate of 0.1 per cent per annum and a repayment period of 40 years, inclusive of a 12-year grace period.
The big-ticket project has a total loan financing requirement of close to $5 billion, the biggest amount for infrastructure financing committed by Japan to a single country. The Japanese funding for the project will be sliced in three to four tranches.
The subway project, set to commence in 2018 and be completed in 2025, will comprise of 14 to 16 stations and run from Mindanao Avenue in Quezon City to Ninoy Aquino International Airport, the country’s premier gateway, and from there connect to the Light Rail Transit. Partial operation of the first three stations is set to begin in 2022.
The long-awaited first underground line for Metro Manila, called Mega Manila Subway, is on the way to become reality with the first tranche of a loan for the project being in. The Philippine government and the Japan International Cooperation Agency on March 16 signed a $1-billion loan agreement as part of the funding for the construction of the subway, which is expected to significantly ease traffic gridlock in the capital. The investment should cover the initial phase of an underground railway with a network spanning over 36 kilometers, which is estimated to eventually (with planned extensions) cost a total of...
The long-awaited first underground line for Metro Manila, called Mega Manila Subway, is on the way to become reality with the first tranche of a loan for the project being in. The Philippine government and the Japan International Cooperation Agency on March 16 signed a $1-billion loan agreement as part of the funding for the construction of the subway, which is expected to significantly ease traffic gridlock in the capital.
The investment should cover the initial phase of an underground railway with a network spanning over 36 kilometers, which is estimated to eventually (with planned extensions) cost a total of $6.9 billion. Officials said the funding agreement carries an interest rate of 0.1 per cent per annum and a repayment period of 40 years, inclusive of a 12-year grace period.
The big-ticket project has a total loan financing requirement of close to $5 billion, the biggest amount for infrastructure financing committed by Japan to a single country. The Japanese funding for the project will be sliced in three to four tranches.
The subway project, set to commence in 2018 and be completed in 2025, will comprise of 14 to 16 stations and run from Mindanao Avenue in Quezon City to Ninoy Aquino International Airport, the country’s premier gateway, and from there connect to the Light Rail Transit. Partial operation of the first three stations is set to begin in 2022.
