- The Philippines and Japan has signed a $2 billion loan last year for the North-South Commuter Railway Project
- The bid extension for the project's second phase has been extended, meaning that Japan is willing to lend more to the country
- The North-South Commuter Railway Project will run from Malolos, Bulacan to Tutuban, Manila
The bid submission for the Philippines and Japan's ongoing project, the North-South Commuter Railway Project, has been extended which means that the East Asian country is willing to lend more to the high-quality railway transport.
It has been known that the governments of both countries have signed a $2 billion loan in 2015 for the construction on what will be the Philippines' largest railway system.
The Japan International Cooperation Agency (JICA) will finance the government's part in the project, which will run from Malolos, Bulacan to Tutuban, Manila.
The North-South Commuter Railway Project is a first for the agency as it is their 'largest-scale assistance to any country for a single project'.
The Philippines is due to pay JICA in 40 years but the country will be given a 10-year grace period.
The agreement between two countries was signed by Finance Secretary Cesar Purisima and JICA chief representative Noriaki Niwa last Friday.
Both parties have recognized the importance of a high-quality railway system in the Philippines as it will help improve the country's never-ending traffic problem.
Niwa said that commercial operations should start in 2020, and the bid extension that has been recently approved covers the second phase of the project.
This opportunity is a win-win situation in both parties, which has definitely inspired us like this Nigerian political activist.