MANILA, Philippines - The Asian Development Bank (ADB) is prepared to extend a total of up to $3 billion in loans to the Philippines for the next three years or from 2010 to 2012.
ADB Country Director for the Philippines Neeraj Jain said the implementation of the three-year lending program will depend on the results of the current year’s program.
Jain said failure to complete the 2009 assistance program, or a perception of failure, may force the ADB to recast the 2010 to 2012 lending program.
“Strong evidence… that it (2009 program) is moving in the right direction will allow us (the ADB) to be flexible,” he added.
Disbursement of the $2- to $3-billion fund will be done on an annual basis, or anywhere from $650 million to $1 billion annually.
The three-year program will focus on infrastructure projects in urban, rural and national levels and is designed to stimulate private sector participation.
Areas of coverage will include financing and policy reforms in the judicial, financial and power sectors. It will also place particular attention on the partnership of the private and public sector for education.
“We would also want to work for the mitigation and adaptation of sustainable natural resources management and climate change,” the ADB country director said.
Part of the loan package will go the mitigation of social impact projects related to the global crisis.
The ADB director said the fund may involve the labor sector of the export industry which is not necessarily poor.
He pointed out that the global crisis might have weakened the export sector, forcing lay-offs of its workers. Since its workers are generally skilled, these may compete with industries that have laid-off or about to lay-off its workers, that are less skilled.
Thus assistance may come in the form of training and education for both the laid-off skilled and unskilled workforce.
The 2009 assistance program is reportedly worth over $1.3 billion. It is focused on expanded budget support, the counter-cyclical support facility, and infrastructure-related activities.
“It is immediate cash needed by the Philippine government in implementing its 2009 National Budget,” Jain explained.