The Philippine and Japanese governments have inked a YEN17.4 Billion (US$124 million) loan deal for the 2nd phase of the Metro Rail Transit Line 3 (MRT-3) Rehabilitation project.

The additional loan will provide funding for the increased total project cost of PHP29.6 billion (US$526 million) resulting from the additional scope of work proposed by the Department of Transportation (DOTr). The loan has a low-interest rate of 0.1% per annum and a repayment period of 40 years, including a 10-year grace period. In accordance with the 25-year Build Lease Transfer (BLT) agreement, the government assumes responsibility for managing and leasing the 16.9-km train system, making monthly equity rental payments to the Metro Rail Transit Corp. (MRTC), the facility's owner and financier of the MRT-3 construction. 

The MRT-3 rehabilitation project involves upgrading various aspects such as rolling stock, rail tracks, signaling, power supply, OCS, communications, and station equipment. Spanning 16.9 km, the MRT-3 is a mass rail transit system with 13 stations along the EDSA Corridor, connecting North Avenue in Quezon City to Taft Avenue in Pasay City.