ADB Loans $4.3B for South Commuter Railway Project

Last June 9, the Asian Development Bank (ADB) officially stated that it will finance the South Commuter Railway project with a subsidy worth over $4.3 billion.  

According to ADB, this is their “largest infrastructure financing in the Asia and Pacific region to date.”

The South Commuter Railway Project is a railway between Calamba, Laguna, and Manila that stretches over 55 kilometers and intends to shorten travel time to one hour. Currently, the average travel time from Manila – to Calamba is two and a half hours. 

“Once completed, the South Commuter Railway will offer commuters fast public transport, help to ease road traffic congestion, and contribute to a reduction in greenhouse gas emissions in line with the Philippines’ climate change agenda,” ADB said in their announcement. 

The planned railway will be part of the larger network of the North-South Commuter Railway. 

This funding initiative of ADB follows suit after their funding for the north side of Metro-Manila, which is the Malolos-Clark Railway. 

“All infrastructure will be designed to be disaster-resilient and able to withstand typhoons and earthquakes,” as stated by ADB. 

ADB also stated that a key aspect of the South Commuter Railway Project is its planned 18 stations “designed to provide safe access for all” and its tunnels which connect it to “the future Metro Manila Subway System.”

The funding for the project would be in separate tranches through a “multi-tranche financing facility.”. Tranches would be released in 2022, 2024, and 2026. 

Aside from ADB, the Japan International Cooperation Agency will also be funding part of the project. ADB also adds that “ADB will finance civil works for the railway viaduct, stations, bridges, tunnels, and depot buildings. The Japan International Cooperation Agency (Jica) is funding the rolling stock and railway systems,”

Source: Inquirer