A 220 billion yen or P84 billion pesos loan from Japan was secured by the Marcos administration to fund the construction of the delayed Metro Manila Subway Project.

The Department of Foreign Affairs (DFA), Department of Transportation (DOTr), and the Embassy of Japan in the Philippines signed the loan agreement, funded by the Japanese government through the Japan International Cooperation Agency.

This marks the fourth tranche of financing for the project since 2018.

“I would like to highlight the significance of Japan’s support to the Philippines through Official Development Assistance. It goes beyond financial support. It represents a strong partnership that deepens the trust between our two countries and promotes sustainable economic development and social stability,” said Japanese Ambassador to the Philippines Endo Kazuya.

DFA Secretary Tess Lazaro expressed gratitude to Japan, underscoring the need to ease traffic congestion in Metro Manila and further stimulate economic activity.

“The line from Valenzuela to Bicutan will connect major residential areas in the north to key business districts such as Ortigas and Bonifacio Global City, bringing Filipinos closer to economic opportunities and facilitating more economic engagements. It will also link these areas to vital transport hubs including NAIA (Ninoy Aquino International Airport) and PITX (Parañaque Integrated Terminal Exchange), the North-South Commuter Railway, and MRT-3,” she said.

Meanwhile, a separate loan agreement was signed for the Central Mindanao High Standard Highway Construction Project, which will be implemented by the Department of Public Works and Highways.

The loan, worth 1.672 billion yen (around P644 million), will cover engineering services for the first section of the project.

The highway will span approximately 64.7 kilometers, traversing Tagoloan and Cagayan de Oro in Misamis Oriental, as well as Manolo Fortich, Sumilao, Impasugong, and Malaybalay in Bukidnon. It will also include 47 bridges, including nine special long-span bridges.

Once completed, the project is seen to cut travel time between Cagayan de Oro and Malaybalay from about six and a half hours to three and a half hours, improving connectivity and trade in the region.

“Japan’s expertise in high standard highway development will improve road quality and safety and cut travel time between Cagayan De Oro, a logistic hub, and Malaybalay, Bukidnon, an agricultural center… These will ease the movement of people and goods, support local industries and attract investments, extending growth to more communities,” said Lazaro.

The highway project is slated for implementation over eight years, from 2026 to 2034.