2026.03.03
On March 3, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of the Philippines in the capital city Manila, to provide Japanese ODA loan for the Metro Rail Transit Line 3 Rehabilitation Project (III). The signatures were exchanged between Secretary Frederick D. Go of Department of Finance of the Republic of the Philippines and Chief Representative Baba Takashi of JICA Philippines.
Signing ceremony
The objective of the project is to improve the safety and service level of Metro Rail Transit Line 3 (MRT3) in Metro Manila, where traffic congestion has become chronic, by rehabilitating it. The Japanese technologies and expertise for maintenance will be used in rehabilitating the aging trains and facilities, further contributing to operational availability and safety. The project also contributes to Sustainable Development Goals 9 (Industry, innovation and infrastructure), 11(Sustainable cities and communities), and 13 (Climate action).
The project outline is explained below.
Terms and Amount of Loan
- Country
(Target Areas)
Republic of the Philippines (Metro Manila)
- Project Objective
To improve the safety and service level of MRT3, promote ridership, and contribute to mitigating traffic congestion, air pollution, and climate change in Metro Manila.
- Project Component
1) Rehabilitation and maintenance of rolling stock, track, signaling, power systems, station facilities, and maintenance equipment, supply of spare parts and maintenance services during rehabilitation and defects liability periods.
2) Consulting services including construction management support and maintenance management capacity building.
- Maximum Loan Amount
21,634.83 million Japanese Yen
- Annual
Interest Rate
0.80%
- Repayment Period
40 Years
- Grace Period
10 Years
- Procurement
Japan tied
- Executing Agency
Department of Transportation
- Contribution to SDGs
Goal 9 (Industry, innovation and infrastructure)
Goal 11 (Sustainable cities and communities)
Goal 13 (Climate action)
-
Planned Implementation Schedule
1. Completion of the Project: October 2027, when maintenance and rehabilitation of MRT3 is completed.
2. Issuing of letters of invitation for consulting services (including detailed design work): April 2019 (already contracted)
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Package CP1 (Rehabilitation and Maintenance)
Release date: December 2018 (already contracted)
＜STEP＞
Special Terms for Economic Partnership (STEP)* will apply to the Japanese ODA loan for this project. Japanese technology, including maintenance techniques for rolling stock, track, and signaling systems, will be utilized at the railway facilities in the project.
* STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions, a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.
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