ADB OKs $1.7 billion loan for lakeshore project

MANILA, Philippines — The Asian Development Bank (ADB) has approved a $1.7-billion loan facility to support the construction of the Laguna Lakeshore project connecting Manila and Laguna.

In a statement yesterday, the multilateral lender said the approved loan would be used to build a climate-resilient expressway covering 37.5 kilometers aimed at promoting connectivity between Manila and Laguna.

Through the project, peak hour travel time between Taguig City in Metro Manila and Calamba City in Laguna province will be reduced by 25 percent.

Under the Laguna Lakeshore Road Network Project, the ADB will fund the construction of a 29.56-km section of the new expressway, including bridges and viaducts that will traverse waterways flowing into the Laguna Lake, located southeast of Manila.

Meanwhile, the 7.89-km northern section of the new expressway will be funded by a $904.35 million loan from the Export–Import Bank of Korea, Economic Development Cooperation Fund under a parallel financing scheme.

Included in the ADB loan is climate financing of $35.6 million for mitigation and adaptation measures such as elevating viaducts and construction of armored lakeside embankments.

An additional $188.2 million loan will be coming from the Asian Infrastructure Investment Bank, which is cofinancing the project.

ADB country director for the Philippines Pavit Ramachandran said the investment cements the multilateral lender’s commitment to help transform the Philippines’ transport infrastructure by facilitating climate- and disaster-resilient and sustainable development.

“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,” he said.