DOF signs $1.7-billion loan with ADB for Laguna Lakeshore Project

The Department of Finance (DOF) signed a $1.7 billion financing agreement with the Asian Development Bank (ADB) for a 37.5-kilometer Laguna Lakeshore Road Network Project.

The P181 billion project aims to alleviate traffic congestion and provide a crucial lifeline to flood-vulnerable communities in Laguna province, benefiting 3.47 million residents.

The expressway will incorporate climate- and disaster-resilient features to address increased rainfall, extreme weather, and flooding risks.

“At the heart of this project is the Marcos Jr. administration’s commitment to climate resilience,” Finance Secretary Ralph Recto said. “We aim to replicate this project all over the Philippines, especially in flood-prone provinces.”

The ADB will fund the 29.56-kilometer section of the expressway through a multi-tranche financing deal. Recto and ADB Philippine Country Director Pavit Ramachandran signed the first tranche of $1.19 billion on Nov. 11. The remaining $509.5 million is targeted for signing in 2026.

The Asian Infrastructure Investment Bank (AIIB) is co-financing the project with an additional $88.2 million. The Export-Import Bank of Korea, Economic Development Cooperation Fund (KEXIM-EDCF) will provide $904.35 million for the 7.89-kilometer northern section.

The government will shoulder the remaining P24.82 billion.