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The Philippines and Asian Development Bank on June 16 signed the loan agreement for the first tranche of the US$4.3-billion South Commuter Railway Project
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The first tranche amounts to $1.75 billion
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ADB will extend the $4.3-billion financing package for the SCRP, which has a total estimated project cost of $8.07 billion, through a multi-tranche facility
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The Japan International Cooperation Agency is co-financing the SCRP through a $1.67 billion loan, with the Philippine government covering the rest of the balance of the project cost
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The 54.6-kilometer SCRP will cut travel time between Manila and Laguna from about two hours by bus to less than an hour by rail
The Philippines and Asian Development Bank (ADB) on June 16 signed the loan agreement for the US$4.3-billion South Commuter Railway Project (SCRP) linking Manila to Laguna.
Finance Secretary Carlos Dominguez III and ADB President Masatsugu Asakawa signed the agreement for the first tranche of the loan amounting to $1.75 billion.
ADB will extend the $4.3-billion financing package for the SCRP, which has a total estimated project cost of $8.07 billion, through a multi-tranche facility.
READ: ADB oks $4.3B loan for Metro Manila-Calamba railway
The Japan International Cooperation Agency is co-financing the SCRP through a $1.67 billion loan, with the Philippine government covering the rest of the balance of the project cost.
Another $1.75 billion loan is expected to be provided by the ADB in 2024, representing the second tranche of the financing package.
The final tranche of $800 million for the project is scheduled to be given in 2026. ADB noted that the SCRP loan is its largest infrastructure financing in history.
The SCRP is expected to bring much-needed relief to thousands of Filipinos traveling between Manila and Calamba along with several nearby towns in Laguna as it will cut travel time between the two points from about two hours by bus to less than an hour by rail.
On top of reducing traffic congestion and offering an affordable, safe and reliable means of transportation for commuters, the SCRP is also seen to contribute to the Philippines’ climate action agenda through the reduction of greenhouse gas emissions once the project is complete.
The 54.6-kilometer SCRP is part of the larger 163-km North-South Commuter Railway (NSCR) system, which is expected to create more than 35,500 jobs during the construction stage and over 3,000 permanent jobs during its operation.
With 18 stations, the SCRP is also expected to improve connectivity in the public transport network by connecting with all existing rail-based public transport lines in Metro Manila. It includes a connecting line to the planned Metro Manila Subway, which will improve connectivity by operation of direct trains for passengers traveling from Calamba to Bonifacio Global City, Ortigas and Quezon City along the Metro Manila Subway.
