ADB SUPPORTS SOUTH COMMUTER RAILWAY WITH $4.3B LOAN

ADB supports South Commuter Railway Project with $4.3B loan

By Marcelle P. Villegas

Afinancial assistance package of up to $4.3-billion loan was recently approved by the Asian Development Bank to support the construction of a 55km suburban railway that will connect Metro Manila with the City of Calamba in Laguna province.

This is currently ADB’s largest infrastructure financing project in Asia and the Pacific region.

The South Commuter Railway Project is part of the North-South Commuter Railway (NSCR) network. The project aims to provide commuters a fast public transport and a reduction in traffic congestion.

In the bigger picture, this project addresses the climate change problem since this transportation alternative will help reduce greenhouse gases emitted by motor vehicles. Therefore, the project conforms with the Philippine climate change agenda.

From a report published by Philippine News Agency, “The project follows ADB’s financing of the Malolos-Clark Railway line north of the capital, for which construction is ongoing.” [1]

ADB Vice-President for East Asia and Southeast Asia and the Pacific, Ahmed Saeed stated: “The South Commuter Railway Project will provide affordable, safe, reliable, and fast public transport for commuters.”

“This project represents ADB’s biggest infrastructure investment and reflects our commitment to helping the Philippines attain its goals of reducing poverty, improving the lives of Filipinos, and achieving green, resilient, and high economic growth.”

The design of this railway project will be disaster-resilient and can hold out against natural disasters like earthquakes and strong typhoons, the ADB said. The railway’s elevated design will make it possible to avoid disruptions of floodings in the route in case of heavy rains.

Eighteen (18) stations will be constructed to deliver convenience and safe accessibility for the elderly, people with disabilities, children, and others. There will also be connecting tunnels that will facilitate direct trains from Calamba to Metro Manila for future projects, the bank added.

Will this railway project help commuters travel faster? Reports say the project is expected to cut the usual travel time of 2.5 hours between Manila and Calamba in half.

The City of Calamba is a firstclass city in the province of Laguna. According to a 2020 census, it has a population of 539,671 people, making it the most densely populated local government unit in Laguna. Calamba is located 50 km (31 mi) south of Manila.

Other than providing convenience and shorter travel time for commuters, the NSCR aims to further boost the country’s economic recovery from the pandemic. The project’s construction will bring job opportunities, both permanent and temporary work.

ADB supports the Department of Transportation (DOTr) through the Infrastructure Preparation and Innovation Facility. ADB’s load will assist the development and projects of DOTr.

Beginning this year, the South Commuter Railway Project will be financed with $1.75 billion, the first tranche of the multi-tranche financing facility (MFF). The second the third tranches are expected to be released in 2024 and 2026. The coverage of ADB’s financing support includes civil works for the railway viaduct, stations, bridges, tunnels, and depot buildings. Supporting this project, the Japan International Cooperation Agency (JICA) will fund the rolling stock and railway systems.

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PH withdraws from global initiative on extractives transparency

The Philippines has withdrawn from the Extractive Industries Transparency Initiative (EITI) on the back of questionable metrics and procedures for assessing the compliance of implementing-countries with the international organization’s transparency requirements.

In a June 20, 2022 letter addressed to EITI chairman and former New Zealand prime minister Helen Clark, Finance Secretary Carlos Dominguez III called EITI’s Validation –a quality assurance assessment process– “subjective, biased and unfair.”

“We find that the manner by which the EITI Board undertakes its validation is unduly subjective, biased and unfair. The Philippines has no confidence in the ability of the EITI to undertake an impartial, transparent, and evidence-based validation process,” Dominguez said.

The Department of Finance (DOF) chairs the Philippine Extractive Industries Transparency Initiative (PH-EITI), a multi-stakeholder body that governs the implementation of the EITI in the Philippines.

EITI prescribes a standard for transparency and accountability in the mining, oil and gas industries.

Extractive companies in implementing-countries are engaged to publicly disclose data on taxes, royalties and other payments they make to the government and their host-communities.

In his letter, Dominguez said the country has been treated unfairly by the EITI Board by using irrelevant metrics and relying on unvalidated reports in assessing the status of civic space in the extractives sector.

The DOF repeatedly sought the details of alleged issues on civic space to enable the government to address the same.

The EITI, however, has not supplied the requested details.

Dominguez called out EITI for its lack of due process and for imposing actions on the Philippines that violate the country’s sovereignty.

“We refuse to be taken hostage by unverified allegations from foreigners and people who have no mandate from the electorate,” he said.

The Philippines has been implementing the EITI since 2013.

In 2016, the EITI recognized the country for its impactful implementation.

EITI implementing-countries undergo validation every three years.

In 2017, the Philippines was declared the first among more than 50 countries in the world to have achieved satisfactory progress in meeting the EITI requirements.

Over the years, the country has demonstrated innovation and best practices in the areas of contract and beneficial ownership transparency, and social, environmental, employment, and gender data disclosures.

The Philippines has also sustained and broadened stakeholder engagement amid extreme situations, such as the coronavirus disease 2019 pandemic.

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The railway project is part of the Philippine government’s “Build, Build, Build” infrastructure development program. It is also one of the country’s infrastructure flagship projects.

ADB also financed similar projects like the Metro Manila Bridges Project in 2021, the Angat Water Transmission Improvement Project in 2016, the Malolos Clark Railway Project in 2019, and more.

Since 1966, the Asian Development Bank has been providing financial assistance for the development of countries in Asia and the Pacific region.

ADB aims to reduce extreme poverty, which is rampant in these regions. There are around 1.7 billion people in Asia and the Pacific who are poor and have no access to basic needs and opportunities for a dignified living that every human being deserves to have.

ADB supports its members and partners through the granting of loans, technical assistance, grants, and equity investments to promote social and economic development.

“The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region. Despite the region’s many successes, it remains home to a large share of the world’s poor: 263 million living on less than $1.90 a day and 1.1 billion on less than $3.20 a day.” [2]

References:

[1] Philippine News Agency (9 June 2022). “ADB approves financing for South Commuter Railway Project”

Retrieved from - https://www. pna.gov.ph/articles/1176331 [2] Asian Development Bank website - https://www.adb.org/ who-we-are/about [3] Census of Population (2020). “Region IV-A (Calabarzon)”. Total Population by Province, City, Municipality, and Barangay. PSA. Retrieved July 8, 2021. Infographics from ADB FB page