Metro Manila, Philippines – The Philippines and Japan signed and exchanged notes for a new ₱8.2-billion (around ¥21.6 billion) in concessional loan to help restore Metro Rail Transit Line 3 to its original design condition and prepare the aging railway for future capacity expansion.
The deal was formalized by Japanese Ambassador Endo Kazuya and Department of Foreign Affairs Secretary Maria Theresa P. Lazaro on Feb. 4 in Pasay City.
In remarks during the signing ceremony, Endo said the project reflects decades of cooperation and Japan’s long-standing commitment to improving public transportation in the Philippines.
“Reliable transport is not only essential to economic growth, but also for improving the daily lives of ordinary citizens,” Endo said, noting that Japanese railway experts are involved in nearly all major railway projects in the country.
The MRT-3, which opened in 1999, transports hundreds of thousands of passengers daily along Epifanio de los Santos Avenue, Metro Manila’s main transport corridor. Aging facilities and repeated operational problems, however, have affected service quality over the years.
Endo said Japanese companies have worked closely with local partners to address the challenges, bringing technical expertise and long-term maintenance support. “The concessional loan that we formally agreed today will allow for the continued rehabilitation and maintenance of this key railway infrastructure,” he said.
The project aims to improve safety and passenger comfort, increase ridership and help ease Metro Manila’s chronic traffic congestion. Officials said the target completion date for the rehabilitation is October 2029.
The loan carries an interest rate of 0.8 percent annually, 40-year repayment, including a 10-year grace period, and requires tapping Japanese goods and services.
Endo also highlighted the broader diplomatic significance of the agreement, noting that 2026 marks the 70th anniversary of the normalization of diplomatic relations between Japan and the Philippines.
“Today’s exchange of notes reflects the trust and cooperation between our two countries,” he said. “Japan remains firmly committed to standing alongside the Philippines as a trusted partner in its development.”
