THE Philippines plans to tap official development assistance (ODA) from Beijing for the proposed extension of the country’s first Light Rail Transit (LRT), the National Economic and Development Authority (NEDA) said.

In a letter dated May 28, NEDA Director General and Socioeconomic Planning Secretary Ralph Recto told Transport Secretary Leandro Mendoza that “the Chinese [ODA] is the most cost-effective financing source” for the LRT Line 1 South Extension Project.

Recto asked the Department of Transportation and Communications (DOTC) to submit documentation for the Chinese loan.

The Philippines earlier was eyeing a $400-million to $500-million grant from the US Millennium Challenge Corp. (MCC) to partly finance the project.

State-run Light Rail Transit Authority (LRTA) had said the planned extension to Cavite of LRT Line 1 would now cost $1.78 billion, up from the previous $683 million.

“The revised project cost includes the light rail vehicle [LRV] requirements on account of the Line 1 North Extension Project and the System Enhancement Works of the entire line during the 40-year concession period,” LRTA said.

The project aims to extend the existing 15-kilometer LRT 1 by an additional 11.7 kilometers, of which about 10.5 kilometers will be elevated and 1.2 kilometers will be at-grade.

The extension will start from the existing line’s last station at Baclaran and will traverse the cities of Parañaque and Las Piñas in Metro Manila before reaching the municipality of Bacoor, Cavite.

The project will include eight new passenger stations, with provision for two additional stations. It is expected to serve 800,000 passengers a day and cut travel time from Bacoor to Monumento, Caloocan City, to less than an hour.

The project will also involve system enhancement works over the concession period, which would include fleets upgrade, replacement and capacity improvements. A total of 64 LRVs will be added in 2020 and another eight in 2030.