Japan pledges 21.6-B yen to continue MRT-3 rehabilitation

Japanese Ambassador Endo Kazuya underscored Japan’s role as a “steady partner” in Philippine development as he signed a 21.6 billion yen or approximately P8 billion loan agreement for the continued rehabilitation of the Metro Rail Transit Line 3.

During the exchange of notes with Department of Foreign Affairs (DFA) Secretary Maria Theresa P. Lazaro, Endo highlighted that the project aims to fix the aging facilities and operational interruptions that have long plagued the line since it opened in 1999.

“Reliable transport is not only essential to economic growth, but also for improving the daily lives of ordinary citizens,” Endo said in a speech. “Japan’s railway experts are, in fact, involved in almost all of the Philippines’ railway projects.”

The ambassador described the loan as a vehicle for Japanese companies to bring technical expertise and a “strong sense of responsibility” to the project. He expressed hope that the joint effort would result in a safer and more convenient service for the hundreds of thousands of commuters who rely on the railway daily to navigate Metro Manila’s severe congestion.

The timing of the agreement holds particular diplomatic weight, as Endo cited that 2026 marks the 70th anniversary of the normalization of diplomatic relations between Japan and the Philippines.

“Japan remains firmly committed to standing alongside the Philippines as a trusted partner in its development and security,” Endo said. “I hope this milestone will further strengthen our friendship and open the door to even broader cooperation in the years ahead.”

The loan carries highly concessional terms, including an interest rate of 0.8 percent per annum and a 40-year repayment period with a 10-year grace period. The project is “Japan Tied,” meaning the financing is linked to the use of Japanese technology and services.

The agreement serves as the third phase of the MRT-3 rehabilitation, focusing on long-term maintenance and structural refurbishment to ensure the line remains a pillar of the capital’s public transportation network.