The Philippines has signed a PhP 4.6 billion loan agreement with Japan for the construction of the third and final phase of the 24.61 km Arterial Road Bypass connecting the North Luzon Expressway in Balagtas, Bulacan, with the Maharlika Highway in San Rafael, Bulacan. The loan carries an interest rate of 1.5 per cent per annum for non-consulting services and of 0.01 per cent per annum for consulting services with a repayment period of 20 years and a 10-year grace period. The Philippines will also provide counterpart funding of PhP 1 billion for the project for which the total estimated cost is PhP 5.26 billion. The third phase of the project involves the upgradation and expansion of the existing bypass road from a two- to four-lane carriageway national road.
The first two phases of the project, for which loan agreements were signed in 2004 and 2012 respectively, were also financed through a $96.5 million loan provided by JICA as part of the Japanese ODA. Phase I of the project entailed the construction of a two-lane 14.65 km bypass road and was completed in November 2012. Phase II of the project involved the construction of a 9.96 km bypass road and is expected to be inaugurated in May 2018.