• The Asian Development Bank (ADB) has approved a $1.7 billion funding for a climate-resilient expressway in the Philippines.
• The expressway is part of the Laguna Lakeshore Road Network Project (LLRN), expected to reduce travel time between Taguig City and Calamba City by 25%.
• The project, benefiting approximately 3.47 million people, will be financed through two loans from ADB.
• The LLRN project aligns with ADB's strategy of promoting environmentally sustainable growth and climate change mitigation.

The Asian Development Bank (ADB) has made a significant stride towards bolstering regional connectivity in the Philippines with the approval of a substantial financing package of nearly $1.7 billion.

This funding is specifically allocated for the construction of a climate-resilient expressway stretching 37.5 kilometers along the country's largest lake.

The expressway, a part of the Laguna Lakeshore Road Network Project (LLRN), is designed to provide a robust and resilient road link within the southern Manila transport corridor.

The project is expected to reduce peak hour travel time between Taguig City in Metro Manila and Calamba City in Laguna province by a significant 25 per cent, as reported by Xinhua news agency.

The ADB's commitment to the LLRN project is not just about improving transportation. It's also about enhancing the lives of the people in the region.

ADB's Multitranche Financing Facility

The new expressway will include bridges and viaducts that will traverse waterways flowing into the Laguna Lake, located southeast of Manila. This infrastructure is expected to benefit approximately 3.47 million people residing along the lake and nearby areas by improving access to markets and public services.

The ADB's support to LLRN will be via a multitranche financing facility consisting of two loans. The first tranche loan amounts to $1.2 billion, while the second tranche loan is $509.5 million. This strategic financial support underscores ADB's commitment to fostering regional connectivity and resilience in the Philippines.

The LLRN project also aims to enhance the capacity of the implementing agency, the Department of Public Works and Highways (DPWH). The DPWH will implement the project and operate and maintain the road network under a public-private partnership scheme.

ADB's Commitment to Sustainable Development

To assist the DPWH with the project's feasibility study, detailed engineering designs, and tender documents, an international consulting firm was mobilized under the ADB-financed Infrastructure Preparation and Innovation Facility (IPIF).

This is not the first time that the ADB has stepped in to support infrastructure development in the region. In the past, the bank has been instrumental in funding similar projects aimed at improving connectivity and resilience. For instance, in 2019, the ADB approved a $2.75 billion loan for the Malolos-Clark Railway Project in the Philippines.

The LLRN project, with its focus on climate resilience, is a testament to the ADB's commitment to sustainable development. It aligns with the bank's strategy of promoting environmentally sustainable growth and climate change mitigation and adaptation.