JICA-backed rail projects on track with targets despite rising costs

By Justine Irish D. Tabile, Senior Reporter 

Railway projects funded by the Japan International Cooperation Agency (JICA) are still on track with completion targets despite the potential impact of the Middle East war on oil prices and costs, contractors said.

“Although we are facing various challenges, including the Middle East conflict, we will achieve our target,” said Takashi Date, the project manager of the Metro Manila Subway Project (MMSP) Contract Package (CP) 103 during a press tour conducted by the Japan Embassy in the Philippines.

MMSP CP103 Construction Manager Ricky P. Salenga said rising oil prices are a concern as the contractor, Sumitomo Mitsui Construction Co., Ltd., uses fuel for its heavy machinery.

“Since this is a construction project and we use heavy machinery, it requires a lot of oil. So, the (limited supply) of oil can affect us,” he said.

He said that the delays will only happen if there is no supply of oil. 

Recent oil price hikes have already affected the project’s costs. 

The MMSP spans 6.516 kilometers and covers two underground stations — Anonas and Camp Aguinaldo — as well as the tunnels. 

As of March 21, the MMSP CP103 package has a 28.43% completion rate. The subway is expected to be completed by 2032.

A joint venture between Shimizu Corp., Fujita Corp., Takenaka Civil Engineering & Construction Co., Ltd., and EEI Corp. (SFTE) also expressed confidence in completing the MMSP CP101 on time for the completion target.

To date, the works under CP101 are about 52% complete. The contract covers the 30.7-hectare Ugong depot as well as the MMSP Valenzuela, Quirino Highway, Tandang Sora, and North Avenue stations.

However, Antonio M. Aganon, Jr., station deputy civil manager of the SFTE joint venture, said that the company has made plans for all the materials the project will need in advance. 

“It will affect the final cost of the project,” he said. “But no one could really tell when (the war) will be done. So, what we can do is to go with our schedule.”

So far, the company has already imported most of the materials and is expecting the delivery of tunnel boring machines in the next two weeks, Mr. Aganon said. 

MMSP CP101 also covers the construction of the Philippine Railway Institute, which is eyed for completion within the year.

Meanwhile, Taisei-DM Consunji, Inc. Joint Venture (Taisei-DMCI JV), the contractor behind the North-South Commuter Railway (NSCR) CP01, said that it sees rising prices of oil and materials impacting the project.

“We are now in the finishing stages of the stations and some of the buildings here. So, the only impact on us probably is the fuel price increase or the costs of other materials that will be increased,” said Gerardo S. Ancheta, Jr., deputy project manager of Taisei-DMCI JV.

He said that the war could impact the prices of the materials the company has yet to import from other countries.

“We are coordinating that properly with the manufacturers and suppliers that we have … For now, we have not heard any issues or problems from them,” he added.

As far as the JV’s part in the project, he said that the company is on track to complete its part by year-end.

“However, there are some interface works that we need to work on with the CP04,” he added, noting that the company will not be able to finish the facilities without the electrical and mechanical (E&M) systems and track works from CP04.

Mr. Ancheta said that the delay stemmed from the late awarding of the CP04, as it was only awarded three years after CP01.

As of March 11, the overall progress of the NSCR CP01 is at 88.77%. The partial operations for the NSCR are eyed for 2027. 

To ensure the timely completion of the two railway systems, President Ferdinand R. Marcos, Jr. has ordered the release of P44.17 billion to the Department of Transportation (DoTr).

According to the Department of Budget and Management (DBM), the funding will “cover critical loan proceeds requirements—ensuring that construction timelines remain on track and momentum is sustained.”

“The funding was authorized through two Special Allotment Release Orders (SAROs) approved by DBM Secretary Rolando “Rolly” U. Toledo on March 23.

The release was charged against the unprogrammed appropriations under the Fiscal Year 2026 General Appropriations Act, specifically for Support to Foreign-Assisted Projects (SFAPs).