Finance Secretary Frederick Go (left) and JICA Chief Representative Baba Takashi pose for a photo during the signing of 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 on Friday (March 27, 2026). The projects are expected to make travel and trade easier in the National Capital Region and Northern Mindanao. (Photo from DOF)
The Philippines has secured fresh financing from the Japan International Cooperation Agency (JICA) for two major infrastructure projects aimed at easing congestion in Metro Manila and improving connectivity in Northern Mindanao.
In a statement, the Department of Finance said the funding agreements cover the fourth tranche of the Metro Manila Subway Project Phase 1 and the engineering services for the Central Mindanao High Standard Highway Construction Project connecting Cagayan de Oro and Malaybalay.
The agreements were signed on Friday by Finance Secretary Frederick Go and JICA Chief Representative Baba Takashi, marking another step in the government’s push to modernize transport networks and strengthen regional trade links.
Go said the new financing reinforces the country’s efforts to address two pressing priorities at once — improving mobility in urban centers and opening more opportunities for growth in the countryside.
“These two financing support sharpens our focus on two critical fronts: improving urban mobility and unlocking the potential of regional economies,” he said during the ceremonial signing.
The latest tranche for the Metro Manila Subway Project amounts to 220 billion Japanese yen, or about P82.48 billion. The funding will be used for civil works, electromechanical and systems components, rolling stock, and consultant services for the long-delayed but highly anticipated mass transport system.
Seen as one of the government’s flagship infrastructure undertakings, the subway is expected to help decongest Metro Manila by providing a faster and more efficient transport option for millions of commuters.
Meanwhile, JICA also extended 1.672 billion Japanese yen, or roughly P626.83 million, for the engineering services of the Central Mindanao High Standard Highway Construction Project covering the Cagayan de Oro-Malaybalay section.
The funding will support detailed engineering work to ensure that the highway is designed with safety, efficiency, and cost-effectiveness in mind before full-scale construction begins. Authorities said this early-stage investment is crucial in avoiding costly errors, reducing risks, and ensuring the project meets high technical standards.
The planned highway will be developed as a new High Standard Highway, or HSH Class 1, built to handle heavier traffic volumes while allowing faster, safer, and more dependable travel.
Once completed, the road is expected to cut travel time between Cagayan de Oro and Malaybalay nearly in half, from 6.5 hours to just 3.5 hours. That improvement is seen to boost the movement of goods and people across Northern Mindanao, helping stimulate business activity and regional development.
For JICA, the financing package reflects its continued support for the Philippines’ long-term economic goals.
JICA Senior Vice President Hayakawa Yuho said the latest agreements are expected to help accelerate the country’s march toward becoming an upper middle-income economy.
“Our hope is that today’s agreement will contribute to accelerating the Philippines’ progress towards upper middle-income country status,” Hayakawa said.