NEWS

By Louise Maureen Simeon | The Philippine Star | June 18, 2022 12:00AM

MANILA, Philippines — The Philippines and the Asian Development Bank (ADB) formally signed the first tranche of the loan financing for the $4.3 billion (P227.6 billion) South Commuter Railway Project that would connect Metro Manila and Calamba in Laguna.

Finance Secretary Carlos Dominguez and ADB president Masatsugu Asakawa signed the loan worth $1.75 billion, the first tranche of the financing that would fund the construction of roughly 55 kilometers of modern suburban railway line.

President Duterte himself witnessed the signing ceremony Thursday night at the Malacañang Palace.

The South Commuter Railway Project, which is part of the North–South Commuter Railway network, is ADB’s largest infrastructure financing in Asia-Pacific to date.

The project has a total cost of $8.07 billion. Of the amount, more than half at $4.3 billion will be extended by ADB.

The Japan International Cooperation Agency (JICA) will lend $1.67 billion while the remaining $2.1 billion will be covered by the national government.

ADB’s financing will be under a multi-tranche facility, with the first tranche of $1.75 billion already signed.

The second tranche worth another $1.75 billion is expected in 2024 and the third tranche amounting to $800 million will be provided in 2026.

The project is expected to offer commuters fast public transport and help ease traffic congestion.

It is a key component of the 163-kilometer North–South Commuter Railway system that will cut travel time from Clark to Calamba to just 1.5 hours from the current four hours. Construction is ongoing for this project.

Mass transit has long been a problem for commuting workers in the capital and nearby sub-urban areas. The lack of available public transport has severely congested Metro Manila.

The Department of Finance emphasized that the project will also contribute to the country’s climate action agenda through the reduction of greenhouse gas emissions once the project is complete.

The project includes the construction of 18 stations and a connecting tunnel to allow the operation of direct trains from Calamba to stations on the future Metro Manila Subway system.

An earlier ADB study showed that the project will pass through 10 of the most vibrant and dense cities in the country but 64 cities and municipalities stand to benefit because of the interlinked nature of their economic activities.

All infrastructure will also be designed to be disaster-resilient and able to withstand typhoons and earthquakes.

The bigger North–South Commuter Railway network is targeted to boost the country’s economic recovery from the pandemic as it is expected to create more than 35,500 jobs during construction and over 3,200 permanent jobs during operation.
ADB said it will improve access to an average of more than 300,000 jobs within any one-hour commute for residents along the project.

Source: The Philippine Star