THE ASIAN Development Bank (ADB) approved a loan of up to $1.7 billion for the Laguna Lakeshore Road Network (LLRN) Project, which is expected to shorten travel time between Taguig City and Calamba, Laguna by 25%.
In a statement on Thursday, the multilateral lender said it approved the financing to support the construction of the “climate-resilient” 37.5-kilometer (km) expressway along the Philippines’ biggest lake.
“This investment further cements ADB’s commitment to help transform our host country’s transport infrastructure by facilitating climate- and disaster-resilient and sustainable development,” ADB Country Director for the Philippines Pavit Ramachandran said.
“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 added.
The ADB will fund the construction of the 29.56-km section of the new expressway, which includes bridges and viaducts along the Laguna Lake waterways.
“The project aims to provide the most resilient road link within the southern Manila transport corridor and cut peak hour travel time between Taguig City in Metro Manila to Calamba City in Laguna province by 25%,” the ADB said.
The LLRN consists of a 37.5-kilometer (km) primary road and a 12-km viaduct from Lower Bicutan, Taguig to Tunasan, Muntinlupa. It also includes a 25.5-km shoreline viaduct and embankment from Tunasan, Muntinlupa to Calamba, Laguna.
Due for completion in 2027, the project is expected to boost economic activity in southern Metro Manila and provinces to the south of the capital region.
The ADB’s support for the project will be structured via a multitranche financing facility consisting of two loans. The first tranche consists of a $1.2-billion loan, while the second tranche is at $509.5 million. The Asian Infrastructure Investment Bank (AIIB) will also participate as co-financier with a $188.2-million loan.
“The ADB loan includes climate financing of $35.6 million to cover mitigation and adaptation measures, including elevating viaducts and construction of armored lakeside embankments,” it added.
At the same time, the 7.89-km northern section of LLRN will be funded through a $904.35-million loan from the Export-Import Bank of Korea, Economic Development Cooperation Fund under a parallel financing scheme.
The ADB said that the LLRN is expected to benefit 3.47 million people.
“The north–south corridor around the lake is crucial for local and international transit of goods, accounting for nearly one-third of nationwide cargo 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 constraints on existing road networks, promoting economic development in the region, and providing safer, more convenient, and faster travel for road users coming from the north and south to various tourist and business destinations in Laguna and nearby provinces,” NEDA Secretary Arsenio M. Balisacan previously said.
Feasibility studies for the second phase of the LLRN project will be completed by December, NEDA said. — Aubrey Rose A. Inosante