The Philippines and Japan signed the second loan deal for the rehabilitation of MRT Line 3, in a ceremony at the DFA building in Pasay City on Wednesday, February 4. Foreign Affairs Secretary Ma. Theresa Lazaro and Japanese Ambassador Endo Kazuya led the ceremonial signing and exchange of notes.
The second supplemental loan is worth P8.175 billion (≈ ￥21.634 billion), following the first agreement with JICA in 2023 worth ￥17.4 billion. The conditions include an interest rate of 0.8% per annum, a repayment period of 40 years (with a 10-year grace period), and tied financing term.
In his speech, Ambassador Kazuya said that Japan is proud to assist in the development of the Philippine railway system, and that the agreement demonstrates the trust and cooperation between the two countries. He said their goal is to make the service safer, more reliable, and more convenient for commuters.
According to Secretary Lazaro, the ongoing rehabilitation of the MRT is a direct investment in the productivity, safety, and quality of life of Filipinos. He added that Japan's support through JICA demonstrates their longstanding partnership in the Philippines' infrastructure development.
The project aims to restore the MRT to its original condition, including replacement of rails, overhauling of 72-CKD Tatra LRVs, and upgrading of signaling and power systems. Transport Secretary Giovanni Lopez said that rehabilitation works began in November 2025 and are targeted to be completed by October 2027, for a faster and more comfortable ride for all commuters, including senior citizens and PWDs.
