THE ASIAN Development Bank (ADB) has approved a loan of up to $1.7 billion for the Laguna Lakeshore Road Network (LLRN) project, which is expected to reduce travel time between Taguig City and Calamba, Laguna by 25%.
In a statement on Thursday, the multilateral lender said it has approved the financing to support the construction of the “climate-resilient” 37.5-kilometer highway along the Philippines’ largest lake.
“This investment further strengthens ADB’s commitment to help transform our host country’s transportation infrastructure by facilitating climate- and disaster-resilient and sustainable development,” said Pavit Ramachandran, ADB Country Director for the Philippines.
“The project will help people find jobs and business opportunities, reduce transportation costs and traffic congestion, and improve efficity of the overall transportation network in Metro Manila and nearby regions,” he added.
The ADB will finance the construction of the 29.56 km section of the new highway, which will include bridges and viaducts along the waterways of Laguna Lake.
“The project aims to provide the most resilient road connectivity within the South Manila Transportation Corridor and reduce travel time by 25% between Taguig City in Metro Manila and Calamba City in Laguna Province,” the ADB said.
The LLRN consists of a 37.5-kilometer (km) trunk road and a 12-kilometer flyover from Lower Bicutan, Taguig to Tunasan, Muntinlupa. It also includes a 25.5 km coastline viaduct and embankment from Tunasan, Muntinlupa to Calamba, Laguna.
Scheduled for completion in 2027, the project is expected to boost economic activity in southern Metro Manila and provinces south of the Capital Region.
The ADB’s support for the project will be structured through a multi-tranche financing facility consisting of two loans. The first tranche consists of a loan of $1.2 billion, while the second tranche amounts to $509.5 million. The Asian Infrastructure Investment Bank (AIIB) will also participate as a co-financier with a loan of $188.2 million.
“The ADB loan includes climate financing of $35.6 million to cover mitigation and adaptation measures, including raising viaducts and constructing armored embankments,” it added.
At the same time, the 7.89 km northern section of LLRN will be financed through a US$904.35 million loan from the Export-Import Bank of Korea, Economic Development Cooperation Fund, under a parallel financing program.
The ADB said the LLRN is expected to benefit 3.47 million people.
“The north-south corridor around the lake is crucial for the local and international transit of goods, accounting for almost a third of nationwide freight in 2021,” it added.
The National Economic and Development Authority (NEDA) board in July approved changes to the LLRN project to include connecting roads to nearby areas.
“The NEDA Board recognizes the significant potential of this project in reducing transportation restrictions on existing road networks, promoting economic development in the region and providing safer, more convenient and faster travel for road users traveling from the north and south various tourist and tourist destinations come. business destinations in Laguna and nearby provinces,” NEDA Secretary Arsenio M. Balisacan said earlier.
Feasibility studies for the second phase of the LLRN project will be completed in December, NEDA said. — Aubrey Rose A. Inosante