The Asian Development Bank said Thursday it approved a $4.3-billion loan to help finance the construction of nearly 55 kilometers of modern suburban railway line connecting Metro Manila and Calamba City in Laguna province.
It said the investment in the South Commuter Railway Project, which is part of the North–South Commuter Railway network, is the multilateral lender’s largest infrastructure financing in the Asia and Pacific region to date.
Once completed, the South Commuter Railway will offer commuters fast public transport, help ease road traffic congestion and contribute to a reduction in greenhouse gas emissions in line with the Philippines’ climate change agenda. The project follows ADB’s financing of the ongoing Malolos-Clark Railway line.
“The South Commuter Railway Project will provide affordable, safe, reliable and fast public transport for commuters,” said ADB vice-president for East Asia, Southeast Asia and the Pacific Ahmed Saeed.
“This project represents ADB’s biggest infrastructure investment and reflects our commitment to helping the Philippines attain its goals of reducing poverty, improving the lives of Filipinos and achieving green, resilient and high economic growth,” said Saeed.
Under the multitranche financing facility, the ADB will make available first tranche of $1.75 billion for the construction of the project. It said the release of the second and third tranches is expected in 2024 and 2026, respectively.
ADB said it will finance civil works for the railway viaduct, stations, bridges, tunnels and depot buildings. The Japan International Cooperation Agency is funding the rolling stock and railway systems.
The project is one of the Philippines’ infrastructure flagship projects and is part of the government’s “Build, Build, Build” infrastructure development program.
It includes the construction of 18 stations to provide safe access for all, including the elderly, women, children and people with disabilities; and a connecting tunnel to allow the operation of direct trains from Calamba to stations on the future Metro Manila Subway system.
The project proponents will design the structure to be disaster-resilient and able to withstand typhoons and earthquakes. The project is expected to reduce travel time between Manila and Calamba by over half from 2.5 hours by road at present.
The NSCR is also seen to strengthen the Philippines’ economic recovery from the devastating impact of the COVID-19 pandemic as it is expected to create more than 35,500 jobs during construction and over 3,200 permanent jobs during operation.
It will create a substantial growth multiplier effect in the economy through supplier contracts and new opportunities opened with better connectivity in the region. It will also improve access to an average of more than 300,000 jobs within any 1-hour commute for residents along the project, according to an ADB study.
ADB’s Infrastructure Preparation and Innovation Facility supported the Department of Transportation in preparing the project.
The loan will support the capacity development and institutional strengthening of DOTr, the implementing agency. The project proponents will elevate the railway to avoid flooding and reduce the impact and disruption to communities along the route.
Project proponents will provide a technical assistance grant to support affected communities.
Other projects financed by the ADB include the Metro Manila Bridges Project in 2021, the EDSA Greenways Project in 2020, the Angat Water Transmission Improvement Project in 2016 and additional financing in 2020, the Malolos Clark Railway Project in 2019 and the Improving Growth Corridors in Mindanao Road Sector Project in 2017.
