Signing of Yen Loan Agreement for the Philippines: Using Japanese Technology to Help Alleviate Traffic Congestion in Metro Manila and Strengthen Ties with North and Central Luzon Island ｜ News & Media

On March 26, the Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Philippine government in Manila, the capital of the Republic of the Philippines, for two projects totaling up to 250 billion yen. The two projects covered by the Loan Agreement are as follows. Signing Ceremony

(1) Dalton Pass East Alternative Road Construction Project (Phase I) (Loan amount: 100 billion yen)

(2) Metro Manila Project (Phase 1) (Phase III) (Loan amount: 150 billion yen)

Details of each business are as follows

(1) Dalton Pass East Alternative Road Construction Project (Phase I)

Dalton Pass East Alignment Road Project (I)

(a) Purpose and outline of business

This project aims to improve transportation infrastructure and mobility by constructing a bypass road with a tunnel on the east side of the current road in the Dalton Pass section of the trunk road connecting Metro Manila and Central and Northern Luzon, thereby contributing to the enhancement of connectivity and economic revitalization of the region. The project will contribute to Goal 9 of the SDGs (Sustainable Development Goals), which is to create a foundation for industrial and technological innovation.

The Japanese technology utilization condition (STEP) (see note) will be applied to the yen loan for this project, and advanced Japanese technologies (NATM auxiliary construction, tunnel equipment construction, and deep foundation pile construction) will be used for the mountain tunnel (the longest in the Philippines) and bridges to be constructed under this project.

(b) Project implementing agency

(c) Schedule for future project implementation (tentative)

Scheduled completion of the project: March 2032 (the project will be completed when the facilities are put into service)

1. expected date of sending invitation for consulting services (detailed design, etc.): June 2024

2. public announcement of bids for the first procurement package under international competitive bidding for the main body of work:

Civil Engineering Package (Construction Works) expected date: January 2026

Civil Engineering Package (Construction Works) Expected date: January 2026 4. JICA Information Desk

For information on the procurement schedule for this project, please contact the following office.

Economic Growth Group, Japan International Cooperation Agency (JICA) Philippines Office

(Contact Point for Economic Growth Section, JICA Philippines Office)

Address: 40th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City, Philippines

tel: +63-2-8889-7119

(2) Metro Manila Project (Phase 1) (Phase III)

Metro Manila Subway Project (Phase 1)(III)

(a) Purpose and outline of business

This project will contribute to the mitigation of air pollution and climate change by building a subway system in Metro Manila to meet the increasing demand for transportation, which will help alleviate the severe traffic congestion in Metro Manila, and contribute to Goal 9 (Create the basis for industrial and technological innovation), Goal 11 (Build inclusive, safe, resilient, and sustainable cities and human settlements), and Goal 13 (Take concrete measures against climate change) of the SDGs (Sustainable Development Goals). (build inclusive, safe, resilient, and sustainable cities and human settlements) and Goal 13 (take concrete measures to combat climate change) of the Sustainable Development Goals (SDGs).

Japanese technology utilization conditions (STEP) (see note) will be applied to the yen loan for this project, and Japanese technology will be utilized for underground tunnel excavation, special construction in areas with limited space for construction, signaling systems, vehicles, etc.

(b) Project implementing agency

(c) Schedule for future project implementation (tentative)

Scheduled completion of the project: November 2029 (the project will be completed when the facilities are put into service)

1. invitations for consulting services (construction supervision, etc.) sent by: November 2018 (hired)

2. public notice of bidding for the first procurement package through international competitive bidding for the main body of work: procurement package name: CP101 (civil engineering and construction) package February 2018 (contract already awarded)

3. JICA information desk

For information on the procurement schedule for this project, please contact the following office.

Economic Growth Group, Japan International Cooperation Agency (JICA) Philippines Office

(Contact Point for Economic Growth Section, JICA Philippines Office,)

Address: 40th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, Makati City, Philippines

tel: +63-2-8889-7119

Loan Amount and Terms

Project name Loan amount

(Millions of yen) Interest rate (%/year) Redemption period

(years) Settlement period

(Year) Procurement Terms Body Consulting Services Dalton Pass East Alignment Road Project (Phase I) 100,000 0.30 0.20 40 10 Japan Tide Metro Manila Subway Project (Phase 1) (Phase III) ( Metro Manila Subway Project (Phase 1)(III)) 150,000 0.30 0.20 40 10 Japan Tide

(Note) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) can also be the lead contractor.

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