JICA Provides Additional Financing for Metro Manila Subway, Supports Central Mindanao Highway Project

The Japan International Cooperation Agency (JICA) and the Department of Finance (DOF), in coordination with the Department of Transportation (DOTR) and the Department of Public Works and Highways (DPWH), signed loan agreements on March 27 at the DOF office in Manila to provide additional financing for the Metro Manila Subway Project, Phase I (MMSP) and to support the development and construction of the Central Mindanao High-Standard Highway (CMH) increasing total financing provided for Japanese Fiscal Year 2025 to JPY243.3 billion. DOF Secretary Frederick D. Go and JICA Chief Representative BABA Takashi signed the loan agreements on behalf of Philippines and Japan. Also in attendance representing the Philippine Government were DOTr Undersecretary Timothy John Batan, and DPWH Director Benjamin Bautista, and representing Japan were Minister for Economic Affairs YOKOTA Naobumi, and JICA Senior Vice President HAYAKAWA Yuho.

The agreements cover JPY 220 billion for the fourth tranche of financing for the MMSP and JPY1.672 billion for the engineering services for the CMH. The signing reflects the continued partnership between JICA and its Philippine counterparts to help ease traffic in Metro Manila and improve road access in Minadano.

During the loan agreement signing, JICA Senior Vice President HAYAKAWA highlighted that "Infrastructure development is a key driver for economic transformation, and we [JICA] sincerely hope that the two loan agreements signed today will contribute to accelerating the Philippines' progress toward upper middle-income country status.

The MMSP, the country's first underground railway, will run 33 kilometers with 17 stations from Valenzuela City to Paranaque city, including a spur line to Ninoy Aquino International Airport Terminal 3. It will shorten travel time from 1 hour and 10 minutes to 45 minutes to meet the growing demand for public transport in Metro Manila and introduce a modern, high-capacity rail system.

Financing for the MMSP covers the construction of tunnels and stations, procurement of rolling stock, installation of electrical and mechanical systems, and the integration of advanced disaster prevention and safety features. It will also include capacity development to support future operations and maintenance.

Meanwhile, the CMH will improve access between Cagayan de Oro and Malaybalay City. It forms part of a larger corridor linking northern and southern Mindanao, including the envisioned long-term route from Cagayan de Oro to Davao.

The new loan agreement will fund engineering services for the CMH. This includes the detailed design and preparatory works for JICA's 12-kilometer section connecting to the remaining 54-kilometer alignment supported by the Asian Development Bank. Once completed, the highway is expected to deliver a safer and more efficient route for users, bringing down total travel time from 90 to 51 minutes.

Both projects reflect JICA's support for quality infrastructure, combining Japanese technology, strong safety standards, and long-term planning. JICA will also continue working with its partners to support capacity development and ensure these projects are managed over time.

As the Philippines and Japan mark 70 years of diplomatic relations in 2026, the provision of a new financing for the MMSP and CMH reflects a legacy of strong cooperation and a shared vision for the future. JICA remains committed to working with the Philippines to improve transport systems, enhance connectivity, and expand opportunities for communities across the country.