MANILA - The construction of the highly anticipated Metro Manila subway project will begin this year, Transportation Secretary Arthur Tugade said Wednesday.

Tugade said the Philippines and Japan signed the first tranche of a 104.5 billion yen (P51.3 billion) loan for Metro Manila's first subway last March.

• Metro Manila Subway: PH, Japan sign loan deal

“The original start of the subway project is next year. This was expedited upon the agreement of the parties,” he said in a Palace press briefing.

“We are still on track. We are starting the groundbreaking and formal construction by the end of the year.”

The government aims to make the subway’s three stations - Mindanao Avenue-Quirino Highway, Tandang Sora, and North Avenue - operational before the term of President Rodrigo Duterte ends in 2022.

Once completed, the subway will have 14 stations and will run from Mindanao Avenue in Quezon City up to the Ninoy Aquino International Airport.

A railway institute and depot will also be built in Valenzuela, Tugade added.

Japan has increased engagements with the Philippines since the time of Duterte's predecessor, Benigno "Noynoy" Aquino, as Tokyo and Manila faced separate maritime disputes with Beijing.

In a rare diplomatic gesture, Japanese Prime Minister Shinzo Abe visited Duterte at his home in Davao City last year.

DELAY IN START OF MINDANAO RAILWAY PROJECT

Meanwhile, Tugade said there will be slight delays in the start of the construction of the first phase of the China-funded Mindanao railway project due to changes in the specifications of the railway system.

“The actual bidding was delayed because I introduced some changes. I want the Mindanao express to be double-track, electric-powered, and be standard [gauge],” he said.

“There will be delays but that is good delay.”

The P35.91 billion 102-km Tagum-Davao-Digos segment of the Mindanao railway is expected to reduce travel time from Tagum City, Davao del Norte to Digos City, Davao del Sur from 3.5 hours to 1.3 hours once it starts operating.