Recto begins series of worksite visits on ODA projects to ensure efficient implementation, starts with Metro Manila Subway

Finance Secretary Ralph G. 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, 2024.

“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 currently has an estimated total cost of PHP 488.5 billion, of which PHP 370.7 billion will be financed through an ODA loan from the Japan International Cooperation Agency (JICA), while PHP 117.7 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 JPY 104.5 billion (about PHP 38.8 billion), which was signed on March 16, 2018; and the second tranche worth JPY, which