AIIB approves $350-M first tranche financing for Bataan-Cavite bridge

China-backed Asian Infrastructure Investment Bank (AIIB) has approved its $350-million counterpart loan for the first tranche financing of the $3.91-billion Bataan-Cavite Interlink Bridge project.

A project status update posted on AIIB's website showed that the multilateral lender approved the $350-million funding for the bridge project on May 15, 2024.

The AIIB's approved $350-million loan completes the $1-billion first tranche financing for the Bataan-Cavite Bridge project, after the Philippine government secured $650 million from the Asian Development Bank (ADB) in December 2023.

The Bataan-Cavite Bridge project, envisioned to be one of the world's longest maritime bridges, is set to be bankrolled through a multi-tranche financing scheme, under which $2.1 billion will be financed by the ADB, while $1.14 billion will be co-financed by the AIIB.

The remaining $664.23 million of the entire estimated project cost of the Bataan-Cavite Bridge will be funded by the Philippine government.

In a news release, the AIIB said the approved financing "marks a milestone support to the Marcos administration's Build Better More Program encouraging enhanced connectivity and promoting sustainable infrastructure development within the Greater Manila Area."

Spanning a distance of 32.15 kilometers, the project is poised to provide a strategic convergence between Regions III and IV-A fostering greater economic growth and improved tourism.

The AIIB said the project would not only reduce travel time from Mariveles, Bataan to Naic, Cavite from five hours to just 1.5 hours, but would also promote greater ease in doing business by unlocking the potential of Bataan and Cavite in facilitating trade and serving as viable tourist destinations.

"The approval of the AIIB loan for the Bataan-Cavite Interlink Bridge project signifies a significant step towards realizing our vision of fostering inclusive and sustainable growth within the Greater Manila Area," said Rajat Misra, AIIB acting vice president for Investment Operations.

"By prioritizing climate-resilient infrastructure and leveraging technology, we aim to not only enhance connectivity but also contribute to the region's economic development while mitigating and adapting to environmental impact," said Misra.

The project will be divided into seven contract packages with the construction to begin first in the two on-land packages.

Package 1 is the 5-kilometer Bataan Land Approach and Package 2 is the 1.35-kilometer Cavite Land Approach.

Packages 3 and 4 are Marine Viaducts in the North and South with a total length of 20.65 kilometers.

Meanwhile, Packages 5 and 6 are the North Channel and South Channel Bridges with a length of 2.15 and 3.15 kilometers, respectively.

The seventh package involves project-wide ancillary works.

The 32.15-kilometer, four-lane inter-island bridge will connect Barangay Alas-asin in Mariveles, Bataan, and Barangay Timalan Concepcion in Naic, Cavite.

The bridge will have two navigational bridges, the 400-meter North Channel Bridge and the 900-meter South Channel Bridge, that are expected to traverse Corregidor Island. About 80% of the structure will be over the sea. — VDV, GMA Integrated News