Japan and the Philippines on Wednesday formalized an agreement to support the rehabilitation of Metro Rail Transit Line 3 (MRT-3) in Metro Manila. The exchange of notes was signed by Japanese Ambassador ENDO Kazuya and Philippine Department of Foreign Affairs Secretary Maria Theresa P. Lazaro.
Under the agreement, the Government of Japan will extend a loan of up to approximately 21.6 billion yen (roughly P8 billion) to the Philippine government for the MRT-3 Rehabilitation Project (Phase III). The project aims to address persistent operational disruptions and technical issues that have affected the rail line in recent years.
The rehabilitation works are intended to improve the safety, reliability, and passenger comfort of MRT-3. By restoring the system’s performance, the project is expected to encourage greater public use of the railway and help ease chronic traffic congestion in Metro Manila.
The loan will carry an interest rate of 0.8 percent per annum and will be repaid over a period of 40 years, including a 10-year grace period before repayment begins. The financing will be provided under Japan-tied terms, meaning that goods and services for the project will be procured from Japan.
The agreement reflects continued cooperation between Japan and the Philippines in the development of urban transport infrastructure and supports efforts to improve mobility and quality of life in the metropolitan area.
