JICA and DOF Sign JPY 21.6B Loan for New Phase of MRT-3 Rehab

The Japan International Cooperation Agency (JICA) and the Department of Finance (DOF) signed a new JPY 21.6 billion loan agreement for the Metro Rail Transit (MRT) Line 3 Rehabilitation Project (III) on March 3, 2026. This agreement marks the next phase of cooperation on the rehabilitation and maintenance of the MRT-3. DOF Secretary Frederick Go and JICA Chief Representative BABA Takashi signed the loan agreement in Manila as witnessed by Minister YOKOTA Naobumi of the Embassy of Japan to the Philippines, Department of Transportation Assistant Secretary Eduardo Macabulos, and other senior officials.

The loan will support ongoing maintenance and finance additional improvements, including upgrades to the power supply system, procurement of new bogie frames, ballast replacement, station renovation works, and acquisition of depot and maintenance equipment. These measures aim to sustain the system’s improved performance and prevent the service disruptions experienced in previous years.

JICA’s involvement in the MRT-3 rehabilitation began in response to the Philippine government’s request to address various operational challenges. This partnership started with a JPY 38.1 billion loan in 2018 to fund comprehensive rehabilitation and proper maintenance of the line. The first phase of rehabilitation was completed in December 2021. In 2023, an additional JPY 17.4 billion loan was signed to extend maintenance and introduce further enhancements. Together, these loans—totaling about JPY 55 billion—restored key infrastructure and established a sustainable maintenance framework for the rail line.

Following the full rehabilitation, MRT-3 resumed operations at its design speed of 60 kilometers per hour, with significantly fewer service interruptions. The replacement of rail tracks and overhaul of rolling stock improved system reliability and ride quality, directly benefiting the daily commute of passengers along EDSA.
During the ceremony, JICA Philippines Chief Representative BABA Takashi emphasized the importance of the MRT-3 rehabilitation to Metro Manila’s public transport network. He noted that the initiative has helped restore public trust and showcased the value of Japan Quality Infrastructure. “It is our sincere expectation that this continued cooperation will help establish a sustainable, safe, and reliable operations and maintenance structure,” he said, adding that MRT-3 remains “an essential pillar of Metro Manila’s public transport system.”

The new loan will also support the transition toward future private sector operation and maintenance of MRT-3. Continued oversight and targeted upgrades during this period are considered critical in avoiding operational setbacks and protecting previous investments.

In celebration of 70 years of diplomatic friendship between Japan and the Philippines, JICA reaffirms its commitment to working with the Philippine government on key initiatives to deliver safe, efficient and high-quality infrastructure that will improve the transport system in Metro Manila. This cooperation spans a wide range of initiatives including enhancements to existing LRT lines, construction of the North–South Commuter Railway and the Metro Manila Subway, development of transport roadmaps and masterplans leading to intelligent transport systems, and establishment of the Philippine Railways Institute (PRI). JICA is also investing further in the Light Rail Manila Corporation to strengthen LRT‑1 operations and maintenance. Together with the MRT-3 Rehabilitation Project, these initiatives highlight the depth of the two countries’ long-standing cooperation.