The Philippines has secured the final $1.45-billion (about ₱82-billion) funding from the Asian Development Bank (ADB) for the Malolos-Clark railway project (MCRP), one of the multilateral lender’s largest infrastructure investments in Asia-Pacific (APAC).

According to the ADB’s statement released Wednesday, April 16, the Manila-based lender has approved the second and final tranche of its multi-tranche financing facility for MCRP.

The ADB said this loan is “a core element of the government’s flagship project to provide a safe, affordable, reliable, and environment-friendly railway connecting northern and southern Luzon provinces to Metro Manila.”

ADB Philippines country director Pavit Ramachandran noted that the railway project is “one of the ADB’s biggest project financing in the entire Asia and Pacific region.”

Japan International Cooperation Agency (JICA) is also co-financing the project. “It will deliver the rolling stock and railway systems such as track, electrical, and mechanical systems,” the ADB said, referring to the Japanese government's development aid arm.

In particular, the railway project covers a 53-kilometer (km) stretch of the 163-km North-South commuter railway (NSCR) system.

The ADB said the whole railway system “will reshape mass transportation in the country” by using disaster-resilient design and high-technology construction methods.

“The ADB is also financing the southern leg of the NSCR system, the South commuter railway project,” it said.

“We are proud to partner with the government in making the vision of a world-class mass transportation system in the country a reality. This major transformative project will spur more investments, create jobs, and contribute to sustaining the country’s growth momentum,” Ramachandran said.

MCRP will offer three types of commuter service: regular trains, express trains stopping at key stations, and the country’s first airport express linking directly to Clark International Airport.

“It will help lower the country’s greenhouse gas emissions with the shift to mass transit from private vehicles,” the ADB noted.

Aside from easing congestion in Metro Manila, MCRP aims to boost regional economic integration by connecting to the Central Luzon corridor. The ADB approved the first $1.3-billion tranche in 2019, which has since been fully utilized.

Moving forward, the ADB committed to continuing to support MCRP’s implementation and extending livelihood assistance to vulnerable communities through technical support.

Founded in 1966, the ADB promotes sustainable and inclusive growth across the APAC region. It is owned by 69 member countries, including 49 from the region.