The road project will unclog roads leading to northern Luzon.
The Philippines signed a new loan agreement with Japan to borrow around 9.399 billion yen for construction work to extend a bypass road in Bulacan.
Finance Secretary Carlos Dominguez III signed the deal with Susumu Ito, chief representative of the Japan International Cooperation Agency (JICA). The Philippines will borrow P4.25 billion from Tokyo and will shell out P1 billion for the third phase of the Arterial Road Bypass Project along Plaridel, Bulacan.
The road extension “is designed to ease traffic congestion in Bulacan and spur economic growth in the province?s rural areas,” the Department of Finance said.
The third phase will widen the road to four lanes, connecting the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway, also called Maharlika Highway, in San Rafael town.
?The bypass road will complement the food route supplying Metro Manila. It is a vital link in the food chain highly appreciated by the population of Bulacan province,? Dominguez said.
The loan comes with a 1.5 percent interest rate per annum plus a 0.01 percent interest for consulting services, with a repayment period of 20 years and a 10-year grace period.