Pres. Duterte's Subway Project Expected to Reduce the Estimated P3.5 Billion Losses of the Government Due to Manila Traffic

The Japanese International Cooperation Agency (JICA) reported that the highly anticipated Metro Manila Subway Project of the Duterte administration is expected to reduce the estimated P3.5 Billion losses of the national government due to Metro Manila's worsening traffic situation.


According to Philippin authorities, the construction fo the Philippine's first subway way line which is expected to start later this year, would alleviate Manila's road congestion which JICA reported to cost the economy P3.5 billion daily.

Susumu Ito, chief representative of the Japan International Cooperation Agency (JICA) in the Philippines, made the estimate, which is substantially higher than the P2.4 billion daily given by a 2014 study. Metro Manila’s population is about 13 million.



“As you can see, the traffic cost is P3.5 billion a day in Metro Manila. If we do nothing, it will become P5.4 billion a day in 2035, but with Build, Build, Build, it can be reduced to P3 billion a day,” Mr. Ito said during the 36th Annual Joint Meeting of the Philippines-Japan Economic Coordinating Committee held yesterday at the New World Hotel in Makati City.

According to JICA the Japanese government is supporting the ambitious "Build, Build, Build" program of the Duterte administration because it is a must for the Philippines.

JICA made an estimates that the road usage in Metro Manila was 13.4 million trips per day in 2017. Without any infrastructure interventions, this will rise to 16.1 million daily trips by 2035, which will come with a cost to the economy of P5.4 billion. Mr. Ito of JICA also pointed out road congestion issues in the nearby provinces of Bulacan, Rizal, Laguna and Cavite, and a Mega Manila population estimate of which over 38 million people by 2035.



The Duterte admin's Socioeconomic Planning Secretary Ernesto M. Pernia said the government wants to fast-track the rollout of the Metro Manila Subway Project, which will be funded through official development assistance from Japan. Pres. Duterte and the Philippine government wants to break ground for the 25-kilometer railway by the third quarter with partial operations up by late 2021 or 2022, following the Japan-Philippines meeting held Feb. 12 in Cebu.

The Metro Manila Subway Line runs from Mindanao Avenue in Quezon City to the site of the former Food Terminal, Inc. in Taguig City. Mr. Ito said completion is targeted by 2025. Mr. Pernia said the government will be staging a job fair in the Middle East within the quarter to attract Filipino technical workers home to boost the labor pool for infrastructure projects.



NEDA also noted that the Duterte admini will be spending P8.13 trillion for 75 big-ticket infrastructure projects until 2022, which are expected to improve mass transport and inter-island connectivity.

Separately, President Rodrigo R. Duterte promised that Japan’s projects in the Philippines will be free from red tape, Presidential Spokesperson Herminio L. Roque, Jr. said.

Here's the Presentation of BusinessWorld for the Economic Cost of Manila Traffic:

Economic cost of traffic in Metro Manila by BusinessWorld


Source: Business World
Pres. Duterte's Subway Project Expected to Reduce the Estimated P3.5 Billion Losses of the Government Due to Manila Traffic Pres. Duterte's Subway Project Expected to Reduce the Estimated P3.5 Billion Losses of the Government Due to Manila Traffic Reviewed by Phil Newsome on February 26, 2018 Rating: 5
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