Recto begins worksite visits on ODA projects to ensure efficient implementation
Finance Secretary Ralph Recto began his series of worksite visits on official development assistance (ODA)-funded infrastructure projects to ensure their efficient implementation, starting with the Metro Manila Subway on February 26.
“Today marks the first of many visits by the Department of Finance to ensure that projects funded by official development assistance from our international partners are moving efficiently for the benefit of the Filipino people,” he said in his message during a press briefing at the East Valenzuela Depot, which is a 30-hectare facility designed to cater to the maintenance requirements of the subway train sets.
The DOF-International Finance Group (IFG) is in charge of securing foreign grants and loans to fund the government’s infrastructure projects and various development projects as well as programs to support the country’s rapid economic growth.
The Metro Manila Subway Project Phase 1 is the country's first-ever underground mass transport system and the third biggest project under the Marcos, Jr. administration’s Build Better More program.
The project involves the construction of a depot and a 33-kilometer railway system consisting of 17 stations that shall connect Valenzuela City to Pasay City with a branch line going to NAIA Terminal 3 in Paranaque City.
Once operational in 2029, the subway will reduce travel time from Valenzuela to NAIA from 1 hour and 30 minutes to 35 minutes and can accommodate 519,000 passengers per day on full operations.
The project has an estimated total cost of P 488.5 billion, of which P 370.7 billion will be financed through an ODA loan from the Japan International Cooperation Agency (JICA), while P117.7 billion will be covered by the Philippine Government.
The project was approved to be financed through a time-sliced loan given its sizable scope. This is a financing modality for large-scale projects through the execution of loan agreements for each tranche.
At present, the project is supported by two active loan agreements with JICA, namely the first tranche worth 104.5 billion yen (about P38.8 billion).
The project is expected to enter into a third tranche agreement with a financing amount of 150 billion yen (about P55.7 billion) by March 2024.
“[T]he Department of Finance is fully committed to securing the funding for this project. We aim to finalize the loan agreement for the third tranche of financing by March 2024. We will also remain resolute in monitoring the progress of all ODA projects,” Recto said.
Recto cited a JICA study, which revealed that the traffic congestion in Metro Manila alone costs the Philippine economy at least P3.5 billion per day or a staggering P 1.27 trillion annually.
This amount is expected to increase to P 5.4 billion daily or P 1.97 trillion per year by 2035 if no effective intervention is done.
“One thing is clear: business-as-usual is not an option. We refuse to let Filipinos squander their hard-earned money and valuable time because of traffic,” he stressed.
JICA Philippines' Chief Representative Sakamoto Takema said the agency is in coordination with the DOTr for an organized masterplan for the Philippines' railway system. DOF Information Management Service
