Malolos–Clark railway funding complete

THE Asian Development Bank (ADB) has approved the release of $1.45 billion as the second and final tranche of financing for the Malolos–Clark Railway Project (MCRP), a key component of the Philippine government's flagship North–South Commuter Railway (NSCR) system.

The MCRP, a 53.1-kilometer segment of the 163-km NSCR, will connect the northern provinces of Luzon to Metro Manila and the southern parts of the island.

ADB Philippines Country Director Pavit Ramachandran said in a statement on Tuesday that the financing for the railway project was one of the Manila-based multilateral institution's biggest in the Asia and Pacific region.

"We are proud to partner with the government in making the vision of a world-class mass transportation system in the country a reality," Ramachandran said.

"This major transformative project will spur more investments, create jobs, and contribute to sustaining the country's growth momentum."

The ADB approved a first tranche of $1.3 billion in 2019 and the amount was said to have been fully utilized. The final tranche will bring the total financing commitment for the MCRP to $2.75 billion.

The project is envisioned to feature three types of commuter services: regular commuter trains, express trains that stop only at high-demand stations, and the country's first dedicated airport express service that will link to the Clark International Airport.

Once operational, the project is expected to significantly reduce travel time between Malolos in Bulacan and Clark in Pampanga.

In addition to easing congestion in Metro Manila, the project is expected to support regional economic integration by linking urban and industrial hubs along the Central Luzon Corridor. A shift to rail-based mass transit is also anticipated to reduce greenhouse gas emissions by lowering a dependency on private vehicles.

The ADB said it would continue to support the project via implementation assistance and technical support for livelihood programs targeted at vulnerable communities that will be affected by construction work.

The Japan International Cooperation Agency (JICA) is cofinancing the MCRP, with its responsibilities including the supply of rolling stock and critical railway systems such as track infrastructure, electrical and mechanical components.

The ADB is also funding the NSCR's southern leg, known as the South Commuter Railway Project, which will connect Metro Manila to Calamba in Laguna.

More funding in the pipeline

Ramachandran told reporters that the government was also set to secure substantial financing for several priority programs this year, with at least three major initiatives topping the list in terms of loan amount.

One of the largest planned projects is the Walang Gutom Program, which will be supported through the Reducing Food Insecurity and Undernutrition with Electronic Vouchers (Refuel) Project, with an estimated funding of $400 million.

This will hopefully be approved in the second quarter of this year, Ramachandran said.

Also in the pipeline is the Marine Ecosystems for Blue Economy Development Program that is also expected to receive around $400 million in funding.

Another major item is the Accelerating Expansion and Sustainability of Health Services for Universal Health Care (Access UHC) program, which has a proposed funding of $300 million.