MANILA — The Philippine and Japanese governments will sign an exchange of notes very soon, which will cover deals on railway projects in the country, Japan’s top diplomat here revealed.
During the 44th Philippine Business Conference and Expo on Friday, Japanese Ambassador to the Philippines Koji Haneda said Manila and Tokyo will sign the exchange of notes on the Metro Rail Transit Line 3 (MRT-3) rehabilitation project “in a few weeks”.
“On the rehabilitation of MRT-3, we will be signing the exchange of notes in a few weeks to provide 38 billion yen or about PHP18 billion,” Haneda added.
Japan International Cooperation Agency (JICA) will be providing the loan for the rehabilitation of MRT-3.
“For the extension of NSCR (North South Commuter Railway)– Malolos to Clark as well as Tondo to Calamba — we are eyeing to have the signing exchange of notes next month,” the envoy noted.
He mentioned that the construction of the first phase of the NSCR, which will connect Malolos City in Bulacan and Tutuban in Manila, is expected to commence before the year ends.
Likewise, the construction of the Metro Manila subway which is also funded by JICA, will start construction within the year.
Haneda mentioned that the loan agreement for these railway projects will be under the Special Terms for Economic Partnership (STEP) of the Japanese government.
Under the STEP, Japan can provide the loan with only 0.1 percent rate on non-consulting services, 0.01 percent on consulting services, with a repayment period of 40 years and grace period of 12 years. (Kris Crismundo/PNA)
