MANILA - The Philippines and Japan have formalized the second tranche of the $2.3 billion loan for the Metro Manila Subway Project Phase 1, the Department of Foreign Affairs said Tuesday.
Foreign Affairs Secretary Teodoro Locsin and Japanese Ambassador Koshikawa Kazuhiko exchanged signed documents to formalize the second tranche of the loan through the Japan International Coorperation Agency, the DFA said.
“The Metro Manila subway will be a shining monument, a state-of-the-art working system attesting to the deep friendship between the Philippines and Japan,” said Locsin.
The P350-billion project is eyed to be completed in 2025. Some 85 percent of the cost was loaned from Japan, expected to be paid in 40 years, with a 12-year grace period and 0.1 percent interest.
Transportation Secretary Arthur Tugade earlier said they plan to open partial operations of the subway by the end of the year, with a "worst-case scenario" that this will be delayed to January or February next year.
The project was approved in 2014 and broke ground in February 2019.
Officials earlier said the subway will be operational by 2025. It broke ground in 2019.