Early completion of metro subway to cost up to $7 B

August 30, 2017 at 12:00

Early completion of metro subway to cost up to $7 B

MANILA, Philippines – The government is considering the possibility of completing the Japan-funded Mega Manila Subway Project earlier but at a higher cost, Socioeconomic Planning Secretary Ernesto Pernia said.

“The Department of Transportation wants to accelerate the completion from 2024 to 2022. And so it means there will be more borers for the paneling needed, therefore the cost will go up,” he told reporters in a recent interview.

The cost for the project was originally placed at $4.4 billion but if it will be completed by 2022, the cost can go up to $7 billion, said Pernia.

“We don’t know the exact number yet,” he said.

The subway, which will link major business districts and government offices in Metro Manila, is expected to be approved by the National Economic and Development Authority (NEDA) board this month.

Funding will come from official development assistance (ODA) loan issued through the Japan International Cooperation Agency (JICA) at an interest rate of less than one percent at a 20-year term. A grace period of 15 years will also be provided before payment of the loan.

The first phase of the project alignment comprises 13 stations from Quezon City to Taguig and is expected to serve 350,000 passengers daily.

The DOTr is considering the extension of the subway project to the Ninoy Aquino International Airport due to the expected growth in passenger volume.

Construction has been tentatively slated between 2019 and 2020.

The NEDA board is targeting to approve the project in time for the scheduled signing of the loan agreement in November when Japanese Prime Minister Shinzo Abe comes to the Philippines for the ASEAN Summit.

Source: https://www.philstar.com/business/2017/08/29/1733576/early-completion-metro-subway-cost-7-b

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