Philippines, ADB sign $1.3-B loan deal for Malolos-Clark railway

The Philippines and the Asian Development Bank on Thursday signed a $1.3 billion loan, the first tranche of the $2.75-billion facility, for the Malolos–Clark Railway Project (MCRP).

The MCRP ADB's single largest infrastructure project financing ever.

Finance Secretary Carlos Dominguez III and ADB vice president Ahmed Saeed signed the loan agreement in a ceremony witnessed by President Rodrigo Duterte in Malacañang.

"We are pleased to be supporting this important flagship project in our host country," Saeed said in his speech.

The Japan International Cooperation Agency (JICA) is supporting the project with an additional funding of up to $2 billion for the rolling stock and the railway systems.

In his speech, Duterte directed the Department of Transportation to fast track the completion of the MCRP and observe the highest quality standards.

Once finished, the MCRP is expected to cut the travel time from Metro Manila to the Clark International Airport to less than an hour, compared with two to three hours by car or bus today.

It is expected to be partially operational in 2022, and is expected to accommodate about 342,000 passengers daily, which is expected to increase to as much as 696,000 passengers daily, traveling to Calamba by 2025.

According to the ADB, the project will use cutting-edge technology to build an elevated railway line, with a maximum train speed of 160 kilometers per hour, to help ease traffic congestion in and around Metro Manila, reduce air pollution, cut the costs of transport and logistics, and encourage economic growth and a population shift outside the capital.

"By the time it is completed, I expect that our people, especially those from Central Luzon, will greatly feel the impact of our 'Build, Build, Build' program," Duterte said.

"As we pursue these endeavors, I expect [you] to embody excellence, integrity and accountability of us here in government as we journey towards inclusive and sustainable growth."

The ADB said civil works contracts under the project were being bid out, with the first contract awards expected in the fourth quarter of 2019. —NB, GMA News