The Japan International Cooperation Agency (JICA) signed a Yen Loan Agreement (L/A) with the government of the Republic of the Philippines on March 27 in Manila for the “Metro Manila (Phase 1) (Phase IV)” and the “Central Mindanao Highway Improvement Project (Cagayan de Oro – Malaybalay Section) (E/S)”. The signing of the Loan Agreement (L/A) took place on the same day. The Loan Agreement (L/A) was signed by Mr. Frederick Go, Minister of Finance of the Republic of the Philippines, and Mr. Takashi Baba, Director of JICA Philippines Office.
Signing Ceremony
More than 1,600 Japanese companies have established operations in the Philippines, with a wide range of bases from Luzon to Mindanao. Improving the efficiency of urban transportation and inter-regional logistics is an important foundation to support these corporate activities. The development of both projects will contribute to the resilience of the supply chain and improvement of the investment environment by easing traffic congestion and improving connectivity, and will further strengthen the economic relationship between Japan and the Philippines.
The following is an overview of the projects covered by the yen loan agreement signed this time.
Project Summary
Metro Manila Subway Project (Phase 1) (Phase IV)
Metro Manila Subway Project (Phase 1) (IV)
Country (Region)
Republic of the Philippines (Metropolitan Manila: population approximately 24.7 million)
Business Objectives
The Metro Manila Metro will be built in Metro Manila to meet the increasing demand for transportation, thereby contributing to the alleviation of severe traffic congestion, air pollution, and climate change in the Metro Manila area.
Business
(1) Civil works, facilities, equipment, etc.: Civil and building works between stations and station sections, development of rolling stock depots and the Philippine Railway Training Center, development of railroad systems, and procurement of 240 rolling stock cars.
(2) Consulting services (bidding assistance, construction supervision, capacity building of implementing agencies (capacity building, knowledge sharing and technology transfer related to railroad development, design, operation and maintenance, etc.), support for implementation of public transportation-oriented development, etc.)
Loan amount (maximum)
220 billion yen
Interest Rates
Body: 0.8% Consulting and services: 0.8
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 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)
Project completion date: October 2031
Expected date of sending invitation for consulting services (detailed design, etc.): November 2018 (already hired)
Publication of bids for the first package of international competitive bids for the main body of work:
Name of procurement package: CP101 (Civil Engineering and Architecture) package
Anticipated date: February 2018 (contract already signed)
Under the STEP (see note below), Japanese technology will be utilized in the excavation of underground tunnels and construction in narrow spaces with high precision and safety, which is a specialty of Japanese companies.
Project Summary
Central Mindanao Highway Improvement Project (Cagayan de Oro-Malaybalay section) (E/S)
Central Mindanao High Standard Highway Construction Project (Cagayan de Oro-Malaybalay Section) (Engineering Services)
Country (Region)
Republic of the Philippines (Eastern Misamis, Bukidnon, Mindanao)
Business Objectives
This project aims to improve the connectivity and mobility of the two cities in Mindanao by constructing the Cagayan de Oro-Malaybalay section of the Central Mindanao Highway, which connects the major cities of Cagayan de Oro City and Davao City, thereby contributing to the economic revitalization and social development of the Mindanao region. This project will contribute to the economic revitalization and social development of the Mindanao region. The portion of the loan will cover engineering services related to the detailed design and bidding assistance for the Cagayan de Oro City section of the above-mentioned project, thereby facilitating smooth implementation of the project.
Business
(1) Civil works: Approximately 65 km of four-lane (two-lane per side) high-standard road including a long span bridge (of which approximately 12 km (Section 1) of the Cagayan de Oro City section will be financed by JICA and the remaining approximately 53 km (Sections 2-5) will be financed by the Asian Development Bank (ADB) and others)
(2) Consulting services (detailed design, bidding assistance, construction supervision, operation and maintenance capacity improvement support, environmental and social considerations, etc.)
The loan will cover the detailed design of Section 1 of the consulting services prior to the main construction. The detailed design of Sections 2-5 will be carried out under the “Infrastructure Preparation and Innovation Facility, Second Additional Financing” (L/A signed in December 2023) financed by ADB.
Loan amount (maximum)
1,672 million yen
Interest Rates
Consulting services 0.80
Redemption period
40 years (including 10 years of deferment)
Procurement Conditions
Japan Tide
Implementing Agency
Ministry of Public Works and Highways
Contribution to the achievement of the SDGs
Goal 8 (Both job satisfaction and economic growth)
Goal 9 (Create a foundation for industry and innovation)
Schedule for future project implementation (tentative)
Project completion date: November 2028 (project completion upon completion of the loan)
Expected date of sending invitation for consulting services (detailed design, etc.): March 2026
Japanese technology will be utilized in the construction of the trestle, including steel-concrete composite structures, half precasts for the trestle, and deep foundation piles.
(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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