The Philippines and Japan signed 221.573 billion yen loan to fund the construction of the Metro Manila Subway Project Phase 1 (IV) and the Central Mindanao High Standard Highway Construction Project (Cagayan De Oro-Malaybalay Section) Engineering Services project.
The financing agreement was signed by were signed by Finance Secretary Frederick D. Go and Japan International Cooperation Agency (JICA) Chief Representative Baba Takashi on March 27, 2026.
The first financing agreement is the fourth tranche of the Metro Manila Subway Project (Phase 1), amounting to JPY220.00 billion that will cover civil works, electromechanical and systems works, rolling stock, and consultant services.
Another financing agreement amounting to JPY1.672 billion will fund the engineering services for the Central Mindanao High Standard Highway Construction Project (Cagayan De Oro-Malaybalay Section).
“These two financing support sharpens our focus on two critical fronts: improving urban mobility and unlocking the potential of regional economies,” he said in his remarks during the ceremonial signing.
“Our hope is that today’s agreement will contribute to accelerating the Philippines’ progress towards upper middle-income country status,”(JICA) Senior Vice President Hayakawa Yuho said during the signing ceremony.
The Mindanao highway project will be developed as a new High Standard Highway (HSH Class 1), designed to accommodate heavier traffic, enable faster travel, and provide a safer, more reliable driving experience.
Once completed, the highway will reduce travel time between Cagayan de Oro and Malaybalay from 6.5 hours to just 3.5 hours.
This will improve food security and support rapid, inclusive and sustainable economic growth.
Together, the Metro Manila Subway Project and the Central Mindanao High Standard Highway Construction Project will improve the lives of daily commuters and long distance travelers, as well as boost trade and tourism for a more competitive and vibrant local economy.
