BALANGA CITY, the Philippines - China's electric vehicle maker BYD inked a deal on Wednesday with the local government of Bataan province to build a monorail transit system in this northern Philippine city northwest of Manila.

Liu Xueliang, general manager of BYD Asia Pacific Auto Sales Division, told Xinhua that the monorail will be built in Balanga city as soon as a feasibility study is completed.

Balanga city, about 120 kilometers northwest of Manila, is the capital city of Bataan province in Luzon Island.

According to BYD, the first phase of the monorail, circling Balanga city, is seven kilometers.

A statement issued at the signing of the BYD-Bataan-Balnga Multi-layered Electrified Transportation said the project is expected to ease the traffic congestions and optimize the transportation conditions in the city.

"Committed to achieving lower carbon and sustainable development, both the BYD and the provincial government of Bataan are working closely to introduce the first batch of 10 units of BYD electric buses for operations before Dec 31 this year," Balanga City Mayor Francis Garcia said.

"With the cooperation with BYD, the city will build a public transport system that will optimize the transportation conditions both in the Balanga city and the rest of Bataan province," Garcia said.

He expressed hope that the monorail transport system will not only address the traffic congestion but also build a green and environmentally friendly public transport system.

The monorail in Balanga city is the second monorail that BYD will build in the Philippines.

In August last year, the Chinese auto company also signed a memorandum of understanding with Iloilo city in the central Philippines for building the country's first monorail.

Now BYD is proceeding to the feasibility study of the 20-km monorail in Iloilo city which deals with the project cost and financing, among others.