CHINA-LED Asian Infrastructure Investment Bank (AIIB) has approved a project to improve flood improvement in Metro Manila worth $500 million.
In a statement, the AIIB said the Metro Manila Flood Management Project “will be achieved by constructing new and modernizing existing selected pumping stations and their supporting infrastructure, by improving solid waste management practices within the vicinity of drainage systems served by the selected pumping stations, and by supporting the resettlement of project affected people.”
The project will focus on 56 potentially critical drainage areas covering about 11,100 hectares or more than 17 percent of the total land area of Metro Manila. New pumping stations will be set up that will benefit about 970,000 people or about 210,000 households.
Although the projects will cost P500, the AIIB will shoulder $207.63 million. A counterpart $207.63 million will come from the World Bank, while the Philippine government will put up $84.84 million.
The World Bank will be the lead financier of the project and will administer the AIIB’s loan.
The project will run from September 2017 to May 2024.
The Department of Public Works and Highways and the Metropolitan Manila Development Authority will implement the project, with the support of the National Housing Authority and Social Housing Finance Corp.
Earlier, the government said sought AIIB funding for the P37.76 billion EDSA Bus Rapid Transit system under co-financing terms.
The Department of Finance had said the Philippines will tap the AIIB to co-finance two more government flagship projects—a dam that will improve the water supply in Metro Manila and a railway linking the National Capital Region to Albay.
The New Centennial Water Source-Kaliwa Dam Project in Quezon province is estimated to cost $374.03 million and the south line of the North-South Railway Project (NSRP) will cost $3.01 billion. Both projects have secured Chinese official development assistance (ODA), but additional funding is needed.
The water project involves the construction of the Laiban Dam at the Kaliwa River, and a smaller Kaliwa Dam downstream to maximize water supply and ensure short- and long-term supply for Metro Manila and adjoining areas.
The NSRP south line from Metro Manila to Legazpi City in Albay will cover a number of existing and proposed branch lines totaling 653 kilometers. It involves a commuter railway between Tutuban station and Calamba City, and long-haul railway operations between Tutuban and Legazpi. This will include long-haul rail operations on the branch line between Calamba and Batangas and an extension between Legazpi and Matnog.