MANILA, Philippines — The Philippine government and Japan have formalized an agreement for a substantial loan amounting to JPY250 billion (approximately PHP92.8 billion) intended to fund significant infrastructure developments, including the Dalton Pass East Alignment Road and the Metro Manila Subway (MMS) project.
According to Philippines News Agency, the financial package will be divided into two distinct portions: JPY100 billion is earmarked for the creation of a bypass route at Dalton Pass, a crucial connector between Metro Manila and north-central Luzon, enhancing the accessibility and integration of Regions I and II with the National Capital Region. The remaining JPY150 billion is designated as the third installment of Japanese assistance for the Metro Manila Subway initiative, marking continued support in a critical urban development venture.
Manalo highlighted the importance of this partnership, noting Japan's role as a strategic ally in the Philippines' ambitious infrastructure enhancement efforts, particularly within the "Build Better More" framework. The projects are expected to significantly improve regional connectivity and urban transportation efficiency.
The Japanese Embassy in Manila expressed optimism that the new road at Dalton Pass will not only provide a resilient and reliable alternative route, enhancing logistical efficiency but also stimulate economic growth across Luzon. Additionally, the embassy emphasized the potential benefits of the MMS project in alleviating traffic congestion and reducing air pollution in the densely populated capital.
This loan supplements previous allocations for the subway project, which received its first tranche in 2017 and a second in 2021. With an interest rate of 0.3 percent per annum for project costs and 0.2 percent for consulting services, the loan terms also include a generous 40-year repayment schedule, complemented by a 10-year grace period, demonstrating a strong, ongoing financial collaboration between the Philippines and Japan in pursuit of sustainable infrastructure development.