In a growing economy, fast and efficient travel is essential, making it the government’s responsibility to invest in quality transportation and infrastructure projects. Enhanced physical connectivity not only improves the quality of life of Filipinos and lowers the cost of doing business, but also boosts local trade and growth for communities along the way.
“Our hope is that today’s agreement will contribute to accelerating the Philippines’ progress towards upper middle-income country status,” Japan International Cooperation Agency (JICA) Senior Vice President Hayakawa Yuho said.
To support this goal, Finance Secretary Frederick D. Go has secured financing from the JICA to move forward with two major infrastructure projects, which will reduce traffic congestion, cut travel time, and bring more opportunities for Filipinos and businesses by making inter-city travel more convenient.
“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 on March 27, 2026.
The 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 between Secretary Go and JICA Chief Representative Baba Takashi.
The fourth tranche of the Metro Manila Subway Project (Phase 1), amounting to JPY 220.00 billion will cover civil works, electromechanical and systems works, rolling stock, and consultant services.
Meanwhile, another financing agreement amounting to JPY 1.672 billion will fund the engineering services for the Central Mindanao High Standard Highway Construction Project (Cagayan De Oro-Malaybalay Section).
This will guarantee that the project is safe, cost-effective, and built to the highest technical standards, helping prevent wasteful construction and minimize risks even before construction begins.
The 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 HSH 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.
