Filtered By: Money
Money

PHL, Japan to sign P18-B loan deal for MRT3 rehab on Nov. 7


The governments of the Philippines and Japan are signing a multibillion-peso loan agreement for the rehabilitation and maintenance of Metro Rail Transit Line 3 (MRT3), the Department of Transportation (DOTr) said Wednesday.

“Na-finalize na ‘yung signing date natin both for the exchange of notes at loan agreement. Napagkasunduan na ng dalawang gobyerno na sa November 7," Transportation Undersecretary for Rails Timothy John Batan said at a news forum in Pasay City.

The loan amounting P18 billion or roughly ¥38 billion will be provided by the Japan International Cooperation Agency (JICA).

The loan carries an interest rate of 0.1 percent per year, with a repayment period of 28 years after a grace period of 12 years, data from Japan’s Ministry of Foreign Affairs showed.

The overall rehabilitation of MRT3 is expected to take 43 months—31 months for simultaneous rehabilitation and maintenance works and 12 months for the contractor’s “defect liability period.”

Engineering teams from Sumitomo-Mitsubishi Heavy Industries—the contractor of MRT3’s rehabilitation and maintenance—have been deployed since October 15 to inspect the spare parts, the depot, and the entire railway system.

“This is part of the commitment ng government of Japan to accelerate the process ... para pagkapirma ng exchange of notes and loan agreement ng kanilang kontrata ay they will hit the ground running,” Batan said.

The rehabilitation will cover the trains, the radio system, the CCTV system, the signaling system, the power supply system, and the public address system.

The contractor is also expected to fix the rail tracks, road rail vehicles, depot equipment, elevators and escalators, and other station-building equipment.

In December 2017, the governments of the Philippines and Japan exchanged a series of notes verbale on a government-to-government agreement for a Japanese service provider to take over the maintenance and rehabilitation of MRT3. —VDS, GMA News

LOADING CONTENT