The Department of Finance (DOF) said it signed a new financing agreement worth $1.70 billion with the Asian Development Bank (ADB) for a road network project that will enhance climate resilience for the people of Laguna province.
It said the 37.5-kilometer Laguna Lakeshore Road Network Project would be built along Laguna Lake at a cost of P181.02 billion.
The project does more than alleviate traffic congestion in Laguna and nearby areas as it provides a crucial lifeline to flood-vulnerable communities surrounding the lake, benefitting 3.47 million residents.
The expressway will incorporate climate- and disaster-resilient features to address increased rainfall, extreme weather and flooding risks in the area.
“At the heart of this project is the Marcos Jr. administration’s commitment to climate resilience. And we know too well the importance of projects like this given the string of destructive typhoons we experienced in the past few months alone,” Finance Secretary Ralph Recto said in his remarks at the signing ceremony on Nov. 11, 2024.
“We aim to replicate this project all over the Philippines, especially in flood-prone provinces. For climate-resilient road network infrastructure is not just a luxury, but a necessity to secure a better and more sustainable future for Filipinos,” said Recto.
The project is also expected to boost economic activities in Laguna, the country’s largest provincial economy and accelerate progress for the entire CALABARZON region.
The ADB will fund the construction of the 29.56-km section of the new expressway through a deal totaling $1.70 billion (P95.05 billion) via a multi-tranche financing.
Recto and ADB Philippine country director Pavit Ramachandran signed the first tranche of the financing worth $1.19 billion (about P66.53 billion) on Nov. 11.
The remaining $509.50 million (about P28.52 billion) or the second tranche financing is targeted to be signed in 2026.
The Asian Infrastructure Investment Bank (AIIB) is co-financing the project with an additional $88.20 million (about P10.53 billion).
Meanwhile, the 7.89-km northern section of the new expressway will be funded by a $904.35-million (about P50.62 billion) financing support from the Export-Import Bank of Korea, Economic Development Cooperation Fund (KEXIM-EDCF) under a parallel financing scheme.
The remaining amount of about P24.82 billion will be shouldered by the government.
