MANILA - The Philippines and Japan have signed a 9.4-billion yen (P4.25 billion) loan for the construction of the third phase of a road project in Bulacan, the Department of Finance said Wednesday.
The 24.6 kilometer road will link the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway, also called Maharlika Highway, in neighboring San Rafael town, the DOF said.
The Philippines will provide counterpart funding of P1 billion for the project, which has a total cost of about P5.26 billion, the DOF said.
"The bypass road will complement the food route supplying Metro Manila. It is a vital link in the food chain highly appreciated by the population of Bulacan province," Finance Sec Carlos Dominguez said.
The loan has an interest rate of 1.5 percent per annum for non-consulting services and 0.01 percent per annum for consulting services with a repayment period of 20 years and a 10-year grace period, the DOF said.