Four priority areas: ADB grants $2.96-B funding for Philippine projects

MANILA, Philippines – The Asian Development Bank (ADB) has identified four priority areas for possible access to financing of up to $2.96 billion for the Philippines in the next three years.

The ADB Philippine country operations business plan (COBP) for 2016-2018 will focus on sustainable and climate-resilient infrastructure, good governance and inclusive finance, inclusive employment and education, and regional integration.

“The COBP is in line with the priorities identified in the country partnership strategy for the Philippines for 2011-2016, the government’s Philippine Development Plan for 2011-2016, and the recommendations of the midterm review of ADB’s Strategy 2020,” the ADB said in a report.

It added co-financing and funding from other sources, including regional cooperation and integration set-aside, would be actively explored.

The Manila-based lending multilateral also said for the three-year period, it is prepared to extend up to $28.8 million in technical assistance.

Strategic infrastructure projects in transport; energy; water and other urban infrastructure and services; and social infrastructure (education, health, and agriculture) will likewise be considered.

“ADB will also consider support that can play a catalytic role and make a positive development impact, including support for projects under the government’s public-private partnership (PPP) program,” it said.

Technical assistance can also be extended to the private sector for feasibility studies, capacity building, and other critical activities to develop challenging infrastructure projects, introduce new concepts or technology, or build country capacity.

Consideration will be given to financial intermediation options, which offer potential for increased access to finance, more inclusive business, and environmental sustainability. Initiatives to build the local capital market or help financial intermediaries meet ongoing capital requirements will also be explored.

Projects under the 2015-2017 program, and to be included in the new three-year program, include: Encouraging Investment through Capital Market Reforms Program Subprogram 2; Expanding Private Participation in Infrastructure Program Subprogram 2; Enhancing Youth School-to-Work Transition Program Subprogram 2; Inclusive Growth through Regional Cooperation Program; Mindanao Development Program; and Improving National Connectivity for Mindanao Development Project.

The 2015 projects forwarded to the new program, but in standby status are: Social Protection Support Project (additional financing); Angat Water Transmission Improvement Project; and Water District Development Sector Project.

Projects with loan amount under consideration for increases are: Local Government Finance and Fiscal Decentralization Program Subprogram 2; and Enhancing Youth School-to-Work Transition Program Subprogram 1.