ADB sets $1.72-B loan program for Phl

MANILA, Philippines - The Asian Development Bank (ADB) plans to allocate $1.72 billion for its lending program for the Philippines over the next three years.

It is also proposing a non-lending program worth $21.1 million, which will be highlighted by co-financing from other sources.

In its Country Operations Business Plan (COBP) for 2013-2015, the ADB said the key areas for lending are infrastructure, Public-Private Partnership (PPP) program, renewable energy, and energy efficiency projects.

“Support for financial intermediation and investment conduits, including private equity funds to finance the country’s priority areas such as small and medium enterprises and infrastructure, will also be a priority,” the ADB said.

However, the Manila-based lender will likewise leverage on private sector knowledge, experience and networks “to attract domestic and international investment.”

The ADB lending program will be aligned with the government’s priorities and the status of project preparation. Increased investments in community-driven, small-scale infrastructure and public sector management are proposed.

The comprehensive development for the Agusan River Basin Project will be dropped while the Urban Water Supply and Sanitation Project will be placed on a standby basis.

The ADB report also said the Water District Development Sector project will likewise be moved from “firm” to standby while the Social Protection Support Project was elevated to firm for 2013, from its standby status to 2014.

Other ongoing concerns which saw downgrades in timetable are: the Education Improvement Sector Development Program moved back to 2014; the Disaster Risk Financing Project, moved to 2015; the Solid Waste Management Sector Project, moved to 2015; the Second Road Sector institutional Development and Investment program to 2015, among others.

The ADB country report said that it was aligning with government’s result monitoring system under the Philippine Development Plan 2011-2016, and “by strengthening systems for public expenditure management and performance budgeting to improve the efficiency of the allocation of scare public resources.”

The report also took note of the good progress made in coverage of the vulnerable population by the conditional cash transfer program.