JAPAN International Cooperation Agency (Jica) has agreed to lend Pesos 55.7bn ($US 1bn) for the construction of the 33km Metro Manila Subway.
It is the third loan for the project provided by Jica, which has already lent Pesos 132.9bn. Two further loans totalling Pesos 151.1bn are under discussion.
According to the Philippines Department of Finance, the interest rates for first two loans are set at 0.1% per year for non-consulting services and 0.01% per year for consulting services.
Each loan has a maturity period of 40 years, which includes a 12-year grace period for the first and 13 years for the second.
The 17-station metro, running from Valenzuela City to Pasay City, with a spur to Ninoy Aquino International Airport (NAIA) in Parañaque City, is expected to cost around Pesos 355.6bn.
Due to be completed in 2029, it will cut the journey time between Valenzuela City and Pasay City from 1h 30min to 35 minutes.
The new metro line, which was reported to be 40% complete in January, will save the country around Pesos 2.5bn each day through reduced travel costs and carbon emissions, says finance secretary, Mr Ralph Recto.
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