NEDA Approves ₱22 Billion Fund For MRT-3 Rehab
The use of official development assistance (ODA) to fund the rehabilitation of the Metro Rail Transit (MRT) Line 3 was approved the Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA).
Socioeconomic Planning Secretary and NEDA chief Ernesto Pernia said the use of ODA worth ¥38.1 billion – or an estimated ₱22 billion – for the ailing rapid transport system was among the projects approved during the ICC-CabCom meeting. This was also confirmed by Japan International Cooperation Agency’s (JICA) senior representative Tetsuya Yamada. However, NEDA has yet to release the full list of projects cleared.
The MRT-3 Rehabilitation Project was among the big-ticket projects discussed by high-level Philippine and Japanese officials during the fifth meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperations in Tokyo last June.
Japanese officials committed to providing ¥38.1 billion ODA loans for MRT-3 rehabilitation and ¥4.37 billion for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project during the meeting. The terms offered for both projects were a repayment period of 28 years after a grace period of 12 years, with an interest of 0.1 percent per annum.
Aside from these projects, four other candidate projects were for possible funding. These projects are:
- Philippine National Railways (PNR) North 2 Project, a railway that would run from Malolos in Bulacan to Clark in Pampanga.
- PNR South Commuter Line, railway extension from Tutuban in Manila to Calamba in Laguna. 3. Pasig-Marikina River Channel Improvement Project, aimed at mitigating flooding in Metro Manila.
- Road Network Development Project in Conflict-Affected Areas in Mindanao.
The rehabilitation of maintenance project for MRT-3 would take 43 months according to the discussion between the Department of Transportation (DOTr) and JICA last May. This is broken down into 31 months for the simultaneous rehabilitation and maintenance works to restore MRT-3 to its original design and capacity, and 12 months for the defect liability period.
The rehabilitation project would cover MRT-3’s trains, power supply system, overhead catenary system, radio system, CCTV system, PABX public address system, signaling system, rail tracks, road rail vehicles, depot equipment, elevators and escalators and other station building equipment.