Loan deal for Metro Rail Transit (MRT)-Line 3 rehabilitation

By Global Infrastructure Sherpa · Feb 20, 2026

Financing Transport announced Philippines Feb 20, 2026

USD8.1B

Deal Value

rehabilitation

Stage

Metro Rail Transit (MRT)-Line 3 rehabilitation

Project

The two countries signed the exchange of notes for a JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3.

Deal Analysis

This announced financing deal involves a JPY 21.6 billion (PHP 8.1 billion) loan from Japan to the Philippines for the rehabilitation of the Metro Rail Transit (MRT)-Line 3. The agreement, formalized through an exchange of notes, underscores the ongoing collaboration between the two nations in bolstering the Philippines' transport infrastructure. The Philippines Government, as the borrower, aims to improve the MRT-3's operational efficiency and safety, contributing to enhanced public transportation in the country. Japan, through the Ministry of Economy, Trade and Industry (METI), supports this initiative as part of its broader strategy to promote economic growth and development in the region. The deal is notable for its size and the involvement of key government entities from both countries. The loan will likely facilitate critical upgrades and repairs to the MRT-3 system. This financing arrangement reflects the Philippines' continued reliance on international partnerships to address its infrastructure needs. The successful rehabilitation of the MRT-3 is expected to have a significant positive impact on commuters and the overall transportation network in Metro Manila.

JPY 21.6 billion (PHP 8.1 billion) loan for MRT-3 rehabilitation.
Involves the Ministry of Economy, Trade and Industry (METI) of Japan as the lender.
The Philippines Government is the borrower, focusing on infrastructure development.
Aims to improve the operational efficiency and safety of the MRT-3 system.

Market Context: The transport sector in the Philippines is experiencing significant investment as the government prioritizes infrastructure development to support economic growth and improve the quality of life for its citizens. This deal is part of a broader trend of international financing supporting infrastructure projects in the region.

Source Intelligence

KEY DETAILS

The Philippine government is looking to sign 11 additional loan agreements valued at JPY 371 billion (around PHP 139 billion). Quote: “We are targeting, this 2026, the signing of 11 additional loan agreements with a total estimated value of JPY 371 billion or roughly USD 2.4 billion,” Since the start of the Marcos administration, the Philippines and Japan have signed 12 financing deals worth JPY 910.38 billion (about PHP 341.2 billion). Quote: Since the start of the Marcos administration, the Philippines and Japan have signed 12 financing deals worth JPY 910.38 billion (about PHP 341.2 billion).

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Deal Size

JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3

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Location

loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3

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Financials

JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3

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Announcement

February 20, 2026

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Signing

Earlier this month, the two countries signed the exchange of notes for a JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3.

PARTIES MENTIONED IN SOURCE

Japan lender

"Earlier this month, the two countries signed the exchange of notes for a JPY 21.6-billion (PHP 8.1-billion) loan deal for the ongoing rehabilitation of the Metro Rail Transit (MRT)-Line 3."

Japan International Cooperation Agency (JICA) lender

"The government is also looking to the sign three loan agreements with the Japan International Cooperation Agency (JICA), proceeds of which will fund key projects like the Metro Manila Subway and the Central Mindanao Highway, Mr. Go said."

high quality Enriched Feb 23, 2026