Manila-based Asian Development Bank (ADB) has approved nearly P100 billion ($1.7 billion) to fund a 37.5-kilometer climate-resilient expressway in the Philippines that aims to boost regional connectivity and economic competitiveness.
The ADB will support the Laguna Lakeshore Road Network Project (LLRN) with a multi-tranche financing facility. This includes a $1.2-billion (around P70.37 billion) first-tranche loan and a $509.5-million (around P29.877 billion) second-tranche loan.
Meanwhile, the Chinese-led Asian Infrastructure Investment Bank (AIIB) is providing an additional $188.2 million (around P11.036 billion) loan to co-finance the project.
“The project will help link people to jobs and business opportunities, reduce transport costs and traffic congestion, and improve the efficiency of the overall transport network in Metro Manila and nearby regions,” said Pavit Ramachandran, ADB country director.
Under the LLRN, the ADB will finance the 29.56-km section of the new expressway, including bridges and viaducts crossing waterways into Laguna Lake, southeast of Manila.
It aims to create the most resilient road link in southern Manila, reducing peak-hour travel time between Taguig City and Calamba, Laguna, by 25 percent.
Additionally, the state-owned Export-Import Bank of Korea (KEXIM) will fund the 7.89-km northern section of the new expressway with a $904.35-million (around P53.031 billion) loan under a parallel financing scheme.
According to the ADB, the project will benefit 3.47 million people, improve access to markets and services, and support major transit routes handling a third of the nation’s cargo.
Further, the ADB loan includes $35.6 million for climate financing to fund mitigation and adaptation measures, such as elevating viaducts and building armored lakeside embankments.