Malolos-Clark railway bags ADB’s largest infra financing to date

The Asian Development Bank (ADB) has approved the financing of up to $2.75 billion for the construction of the North-South Commuter Railway (NSCR), said to be the Japan-led lender's largest infrastructure project financing to date.

In an emailed statement, the ADB said it approved financing of up to $2.75 billion for the construction of 53.1 kilometers of a passenger railway connecting Malolos to Clark.

It will also be co-financed with up to $2 billion by the Japan International Cooperation Agency (JICA), which will finance the rolling stock and the railway systems.

"Our co-financing partnership with JICA allows both our institutions to combine our expertise and knowledge in building a world-class railway in the Philippines," said Markus Roesner, ADB principal transport specialist for Southeast Asia.

The project involves the construction two rail segments—a 5.12-kilometer section connecting Malolos in Bulacan to Clark, and a 1.19-km extension connecting the NSCR to Blumentritt in Manila.

"It will be ADB’s single largest infrastructure project financing ever, and from a development perspective, we are pleased this investment is taking place in ADB’s host country," said ADB president Takehiko Nakao.

"The project, combined with other investments in light rail transit, metro rail transit, and subway systems, will bring back the culture of rail transport in Metro Manila," he added.

Once finished, the Malolos-Clark Railway Project 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.

Just last month, the ADB slashed its economic growth outlook on the Philippines for this year, as it flagged downside risks such as the El Niño dry spell and the delay in the approval of the 2019 budget. — BM, GMA News