The Department of Finance (DOF) said it has secured new financing from the Japan International Cooperation Agency to advance two major transport projects totaling about P713 billion, as both developments continue to face delays.

In a statement, Finance Secretary Frederick Go said the financing underscores the government’s dual focus on urban mobility and regional development, noting that improved infrastructure is key to lowering transport costs and boosting economic activity.

“These financing agreements sharpen our focus on improving urban mobility and unlocking the potential of regional economies,” he said.

The DOF said the agreements cover the fourth tranche of the Metro Manila Subway Project (Phase 1) and engineering services for the Central Mindanao High Standard Highway (Cagayan de Oro–Malaybalay section)—projects aimed at easing congestion and improving regional connectivity.

The subway project will receive ¥220 billion (about P83 billion) in additional funding, covering civil works, electromechanical systems, rolling stock, and consultancy services. Once completed, the project is expected to ease congestion and cut travel time across key corridors in Metro Manila.

However, the flagship subway has faced right-of-way constraints, utility relocation delays, and rising costs, pushing back timelines for partial operations.

Meanwhile, ¥1.672 billion (around P630 million) has been allocated for engineering services for the Mindanao highway project. The funding will support feasibility studies and detailed engineering designs to ensure the project is technically sound and cost-efficient before full construction.

The planned highway will reduce travel time between Cagayan de Oro and Malaybalay from 6.5 hours to about 3.5 hours, improving logistics and market access in Northern Mindanao.

Still, similar road projects in the region have previously drawn concerns over project delays, land acquisition, and environmental compliance, highlighting risks that could affect timelines if not addressed early.

“Our hope is that today’s agreement will contribute to accelerating the Philippines’ progress towards upper middle-income country status,” Hayakawa Yuho said.