Japan is the Phillippines’ top trading partner, and says the 38km elevated commuter railway line would connect Manila to Bulacan province. The new line aims to reduce congestion in the capital and help spur economic activity.

In Manila, railway commuters endure long queues and overcrowding is common on the trains which are occasionally forced to stop between stations.

No timeline has been provided for the project but the loan is for the Philippine Transportation Department and is payable over 40 years.