The Japan International Cooperation Agency (JICA) signed a Yen Loan Agreement (L/A) with the government of the Republic of the Philippines for the “Metropolitan Area Railway Line 3 Rehabilitation Project (Phase III)” on March 3 in Manila, the capital of the Philippines. The signing took place between Mr. Frederick Go, Minister of Finance of the Republic of the Philippines, and Mr. Takashi Baba, Director of JICA Philippines Office.
Signing Ceremony
This project will improve the safety and comfort of Metro Manila’s Metropolitan Area Railway Line 3, which suffers from chronic traffic congestion, thereby promoting the use of this line and contributing to alleviating the severe traffic congestion in the metropolitan area. Furthermore, this project is using Japanese maintenance and inspection techniques to repair and otherwise maintain aging rolling stock and equipment, contributing to improved utilization and safety. In addition, the project contributes to Goal 9 (Create a foundation for industry and technological innovation), Goal 11 (Create cities where people can continue to live), and Goal 13 (Take concrete measures against climate change) of the SDGs (Sustainable Development Goals).
A summary of the business is as follows
Project Summary
Metropolitan Area Railroad Line 3 Rehabilitation Project (Phase III)
Metro Rail Transit Line 3 Rehabilitation Project (III)
Country (Region)
Republic of the Philippines (Metro Manila)
Business Objectives
By renovating MRT Line 3 in Metro Manila, which has experienced a series of operational disruptions and other problems, the project will improve the safety and comfort of the line and promote its use, thereby contributing to alleviating serious traffic congestion in Metro Manila and mitigating air pollution and climate change.
Business
(a) Refurbishment and maintenance of rolling stock, railroad systems, station facilities, and maintenance equipment, and provision of spare parts, and maintenance during refurbishment and during the warranty period
(b) Consulting services (construction supervision, support for strengthening maintenance and supervision capacity, etc.)
Loan amount (maximum)
21,634.83 million yen
Interest Rates
0.80% (0.80%)
Redemption period
40 years (including 10 years of deferment)
Procurement Conditions
Japan Tide
Implementing Agency
Ministry of Transport
Contribution to the achievement of the SDGs
Goal 9 (Create a foundation for industry and technological innovation)
Goal 11 (Create a community where people can continue to live)
Goal 13 (take concrete action on climate change)
Schedule for future project implementation (tentative)
(1) Project completion date: October 2027 (project completion upon completion of maintenance and renovation)
2. expected date of sending invitation for consulting services (detailed design, etc.): April 2019 (already hired)
3. public announcement of bids for the first package of international competitive bids for the main body of work:
Name of procurement package: CP1 (rehabilitation/maintenance) package
Scheduled date: December 2018
＜STEP>
The yen loan will be subject to Japanese technology utilization conditions (STEP) (see note), and Japanese technology will be utilized in the maintenance and management of the railroad system, including rolling stock, track, and signaling systems.
(Note) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) can also be the lead contractor.
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