Finance Secretary Ralph G. Recto has secured a new financing agreement with the Asian Development Bank (ADB) for a game-changing road network project that will enhance climate resilience for the people of Laguna.
With an estimated project cost of PHP 181.02 billion, the Laguna Lakeshore Road Network Project will build a climate-resilient 37.5-kilometer (km) expressway along Laguna Lake.
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,” Secretary Recto said in his remarks at the signing ceremony on November 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,” he added.
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 USD 1.70 billion (PHP 95.05 billion) via a multi-tranche financing.
The first tranche of the financing worth USD 1.19 billion (about PHP 66.53 billion) was signed between Secretary Recto and ADB Philippine Country Director Pavit Ramachandran on November 11, 2024.
The remaining USD 509.50 million (about PHP 28.52 billion) second tranche financing with the ADB is targeted to be signed in 2026.
The Asian Infrastructure Investment Bank (AIIB) is co-financing the project with an additional USD 188.20 million (about PHP 10.53 billion).
Meanwhile, the 7.89-km northern section of the new expressway will be funded by a USD 904.35 million (about PHP 50.62 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 PHP 24.82 billion will be shouldered by the Philippine government.
“We, in the Department of Finance, take the responsibility over our people’s money very seriously. Dahil bawat piso na ipinagkatiwala ng Pilipino sa atin ay simbolo ng milyong-milyong pangarap, pagsisikap, at pag-asa,” the Finance Chief stressed.
“And that is why we are here today—to make sure that every peso from our taxpayers is prudently used for projects that stand the test of time and create lasting impact for generations,” he added.
Present during the signing ceremony were National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan and Department of Public Works and Highways (DPWH) Secretary Manuel Bonoan.
Local government officials also in attendance were Calamba City Administrator Johnny R. Pamusapusan, San Pedro City Administrator Atty. Henry B. Salazar, and Cabuyao City Administrator Levi G. Dimaunahan.
Other attendees from the ADB side were Vice-President East and Southeast Asia and the Pacific Scott Morris, Southeast Asia Department Director General Winfried Wicklein, and Transport Director Dong Kyu Lee.
