By Adrian H. Halili, Reporter
MANILA AND TOKYO on Wednesday signed an P8.18-billion loan agreement to rehabilitate the Metro Rail Transit Line 3 (MRT-3), because the heavily used rail line continues to face technical and operational disruptions.
Foreign Affairs Secretary Ma. Theresa P. Lazaro said the funding goals to revive MRT-3 to its original “as-designed condition,” allowing for improved reliability, higher capability and sustained performance over the long run.
“More importantly, it should translate into safer journeys, shorter travel times, and an improved commuter experience for the hundreds of thousands of Filipinos who depend on MRT-3 daily,” she said in prepared remarks sent to reporters.
The loan amounts to ¥21.63 billion, or P8.18 billion, with a repayment period of 40 years, including a 10-year grace period, at an rate of interest of 0.8% each year, the Japanese Embassy in Manila said in a press release.
The rehabilitation project includes the alternative of the MRT-3’s mainline rails, the overhaul of train vehicles and integration with other MRT-related projects. It also covers the procurement of bogie frames and bogie assemblies needed to enhance train stability and safety.
The project also seeks to revive and upgrade key railway subsystems, including tracks, the signaling system, power supply system, overhead catenary system, communications system and various maintenance and station facilities. The rehabilitation is targeted for completion by October 2029.
“The continued rehabilitation of this vital transport system is subsequently not merely an infrastructure project, but a direct investment within the productivity, safety and quality of lifetime of our people,” Ms. Lazaro said.
Japanese Ambassador to Manila Endo Kazuya said the concessional loan would support the continued rehabilitation and maintenance of a rail system that plays a central role in Metro Manila’s every day transport needs.
“The MRT-3 has been a necessary a part of on a regular basis life in Metro Manila, carrying lots of of hundreds of passengers daily,” he said. “Over time, nevertheless, aging facilities and operational challenges affected the standard of service.”
In 2023, the Philippines and Japan signed the primary tranche of the loan package price ¥18.4 billion, which was used to start overhauling worn-out tracks and light-weight rail vehicles.
“Through various types of support, Japan is proud to contribute to the advancement of the Philippine railway system,” Mr. Endo said, adding that Japanese railway experts are involved in most major rail projects within the country.
Running along a big stretch of Epifanio de los Santos Avenue (EDSA), Metro Manila’s most important thoroughfare, MRT-3 serves as a critical connector in the federal government’s effort to integrate existing and future rail lines.
Rene S. Santiago, a world transport development consultant and former president of the Transportation Science Society of the Philippines, said faster improvements could possibly be achieved by allowing wider use of the federal government’s long-idled Dalian trains.
“There might be immediate improvement if the prohibition versus Dalian trains is lifted,” he said in a Viber message.
The Philippines acquired 48 China-made Dalian train cars in 2016, but most were left unused for years as a consequence of technical compatibility issues. Only nine cars were deployed on MRT-3 last 12 months.
Nigel Paul C. Villarete, a senior adviser on public-private partnerships at Libra Konsult, Inc., said the rehabilitation would extend the MRT-3’s lifespan and improve service reliability, but stressed the necessity to assess the economic impact of the investment.
“Is it price spending money for the expected improvement?” he said via Viber. “The metric shouldn’t be how much is spent, but how much the advantages amount to in economic terms.”
He also warned that the EDSA Bus Rapid Transit system, which serves the same commuter base, could possibly be affected without integrated transport planning.
“Nobody analyzes that upgrading one mode can have a negative economic effect on one other when each serve the identical market,” he said.
John Paolo R. Rivera, a senior research fellow on the Philippine Institute for Development Studies, said sustained upgrades for the MRT-3 is required for long-term viability.
“A more dependable MRT-3 reduces congestion, lowers travel time costs and strengthens the National Capital Region’s productivity,” he said in a Viber message.
He added that the federal government should make rehabilitation continuous and never episodic, so operational difficulties don’t recur.
The MRT-3, which carries about 400,000 passengers every day, has long struggled with frequent technical glitches, limited train availability and maintenance backlogs, prompting renewed calls for urgent rehabilitation of the 27-year-old system.