Manila: The Philippines, through the Department of Finance (DOF), has secured funding from the Japan International Cooperation Agency (JICA) to improve travel and trade in the National Capital Region (NCR) and Northern Mindanao.

According to Philippines News Agency, financing agreements for the Metro Manila Subway Project Phase 1 (IV) and the Central Mindanao High Standard Highway Construction Project (Cagayan de Oro-Malaybalay Section) Engineering Services were signed by Finance Secretary Frederick Go and JICA Chief Representative Baba Takashi.

The fourth tranche of the Metro Manila Subway Project (Phase 1), amounting to 220 billion Japanese yen (PHP82.48 billion), will include civil works, electromechanical and systems works, rolling stock, and consultant services. Another financing agreement of 1.672 billion Japanese yen (PHP626.83 million) will fund the engineering services for the Central Mindanao High Standard Highway Construction Project (Cagayan de Oro-Malaybalay Section).

The funding ensures that the project is safe, cost-effective, and built to high technical standards, which will help prevent wasteful construction and minimize risks before construction begins. The project is set to be developed as a new High Standard Highway (HSH Class 1), designed for heavier traffic, faster travel, and a safer, more reliable driving experience.

Upon completion, the highway is expected to reduce travel time between Cagayan de Oro and Malaybalay from 6.5 hours to 3.5 hours. JICA Senior Vice President Hayakawa Yuho expressed hope that the agreement will contribute to accelerating the Philippines' progress towards achieving upper middle-income country status.