Japan, Philippines sign Phl MRT-3 rehabilitation loan worth ¥21.6B

Japan and the Philippines on Tuesday formalized a new loan agreement for the Metro Rail Transit Line 3 (MRT-3) Rehabilitation Project, with funding capped at about 21.6 billion yen.

Japanese Ambassador Endo Kazuya and Department of Foreign Affairs Secretary Maria Theresa P. Lazaro signed and exchanged notes for the project, which marks the third phase of Japan-supported rehabilitation efforts for the railway line.

The project involves extending a loan to the Philippine government to refurbish MRT-3, which has experienced repeated operational disruptions and technical issues over the years.

Officials said the rehabilitation aims to improve the safety and comfort of the railway system, encourage increased ridership, and help ease chronic traffic congestion across Metro Manila.

Under the agreement, the loan carries an interest rate of 0.8 percent per annum and a repayment period of 40 years, including a 10-year grace period. The financing will be under Japan-tied terms.

MRT-3 serves as one of Metro Manila’s major rail corridors, and the latest rehabilitation effort is expected to further stabilize operations and extend the system’s service life.