16/12/2023
The Marcos Jr. administration is set to construct the Bataan-Cavite Interlink Bridge (BCIB)––one of the world’s longest marine bridges, after signing a loan agreement with the Asian Development Bank (ADB) for the first tranche of financing for the project on December 15, 2023.
The project will reduce travel time between Bataan and Cavite to 45 minutes from 5 hours.
The ADB has approved financing of up to USD 2.11 billion (about PHP 118.32 billion) for the construction of the climate-resilient BCIB, which spans 32.15 kilometers connecting Bataan and Cavite provinces across Manila Bay to decongest Metro Manila.
The BCIB project will be financed under a multi-tranche financing facility, with the first tranche of the loan amounting to USD 650 million (around PHP 36.22 billion).
Succeeding tranches will be availed of in the duration of the project, subject to securing relevant government approvals for each subsequent loan tranche.
The BCIB will be constructed using low-carbon technologies and construction materials.
It will complete the transport loop around Manila Bay and better connect Metro Manila to Central Luzon and nearby provinces of Cavite, Laguna, Batangas, Rizal, and Quezon, helping boost economic activity in these areas.
“The improved transport connectivity will promote deeper regional economic integration and spur economic activity within NCR, CALABARZON, and Central Luzon,” Secretary Diokno said in his speech.
The project, which is part of the Infrastructure Flagship Projects (IFPs) under the Marcos, Jr. administration’s Build Better More program, is estimated to cost USD 3.91 billion (about PHP 219.31 billion).
Of this amount, USD 2.11 billion (about PHP 118.32 billion) will be financed by the ADB while USD 1.14 billion (about PHP 63.71 billion) is proposed to be co-financed by the Asian Infrastructure Investment Bank (AIIB).
The remaining USD 664.23 million (about PHP 37.28 billion) will be funded by the Philippine government.
Apart from the BCIB Project, the USD 200 million (about PHP 11.15 billion) loan agreement for the Infrastructure Preparation and Innovation Facility – Second Additional Financing (lPlF-AF2) was also signed.
The lPlF-AF2 aims to sustain increased investments in infrastructure by enhancing the capacity of implementing agencies in preparing and managing public infrastructure investments through improving the delivery of high-quality, inclusive, climate-resilient, and low-carbon infrastructure projects; and accelerating sustainable, resilient, integrated, inclusive, and modern critical infrastructure development.
This second additional financing will increase the scope of the ongoing project in order to respond to the government’s new investment needs, which includes scaling up climate action.
The lPlF-AF2 amounts to USD 229.80 million (around PHP 13.08 billion).
Of the amount, USD 200 million (about PHP 11.15 billion) will be financed by the ADB through a loan, while USD 29.80 million (around PHP 1.70 billion) will be covered by the government through the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr)’s budgets.
“These projects are a product of the continued strong cooperation between the ADB and the Philippine government. The synergy we have fostered with the Bank over the years has enabled us to continually produce inclusive and innovative projects such as the BCIB and the IPIF,” Secretary Diokno said.
“We will continue to be your steadfast partner in infrastructure development, in economic reforms in enhancing competitiveness, and human development,” ADB VP for East Asia, Southeast Asia, and the Pacific Scott Morris said in his remarks.
The two loan agreements were signed by Finance Secretary Benjamin E. Diokno on behalf of the Philippine government and ADB Country Director for the Philippines Pavit Ramachandran representing the Bank at the ADB headquarters.
Also present to witness the signing ceremony were Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman; National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan; DPWH Secretary Manuel M. Bonoan; DOTr Secretary Jaime J. Bautista; ADB Vice President Scott Morris; ADB Managing Director General Woochong Um; and ADB Director-Generals Ramesh Subramaniam, Winfried Wicklein, and Emma Veve.
