Additional AIIB funding sought for infrastructure projects

MANILA, Philippines — The government is seeking additional funding assistance from the Asian Infrastructure Investment Bank (AIIB) for three other big-ticket infrastructure projects, the Department of Finance (DOF) said yesterday.

Finance Secretary Carlos Dominguez said among the projects pitched by the Philippines for possible AIIB financing include the Metro Manila Bus Rapid Transit System (Bonifacio Global City to Ninoy Aquino International Airport segment), Pasacao-Balatan Tourism Costal Highway in Camarines Sur, and the Camarines Sur Expressway Project-San Fernando to Pili section.

Dominguez said the Philippines is hopeful for more official development assistance from AIIB following last year’s signing of the bank’s co-financing agreement for the $500 million Metro Manila Flood Management Project with the World Bank.

“We are hopeful that with the approval of the funding for this project, the AIIB would find it feasible to invest in other big-ticket infrastructure projects under the Duterte administration’s  Build Build Build program, Dominguez said.

Aside from the mentioned infrastructure projects, Dominguez earlier said the government is also eyeing possible AIIB assistance for the construction of health care facilities and school buildings in the country.

Last year, the AIIB approved its counterpart funding amounting $207.63 million for the first phase of the Metro Manila Flood Management Project.

The project aims to eliminate flooding around Laguna de Bay, improve urban drainage, modernize Metro Manila’s pumping stations, and improve flood forecasting, early warning systems, and community-based flood risk management.

It will involve the rehabilitation of 36 pumping stations in Manila, Pasay, Taguig, Makati, and Malabon, and the construction of 20 new pumping stations in Manila, Pasay, Pasig, Mandaluyong, San Juan, Caloocan, Valenzuela and Quezon City. Dominguez recently visited Mumbai, India to participate in the third annual meeting of the Board of Governors of the AIIB.

In a speech at the Asian Infrastructure Forum (AIF), Dominguez reiterated the urgency of developing both physical and digital infrastructure to improve the interconnectivity and hasten the development of a common market across the Southeast Asian region.

The finance chief said the initiative to improve infrastructure across the region, which is the AIIB’s primary goal, “will help stimulate economic activity in all our economies and help us build inclusive growth for our people...and improve the interconnectivity of the region’s economies and foster productive exchange.”