AIIB eyes Philippine infra projects for financing

MANILA, Philippines — China-led Asian Infrastructure Investment Bank (AIIB) is exploring various infrastructure in the Philippines for possible financing assistance, according to the Department of Finance.

Quoting AIIB’s senior advisor to the president and chief programming officer Konstantin Limitovsky, the DOF said the bank is developing a pipeline of projects that the bank can undertake over the next three to five years.

“I am confident we will be able to select correct projects to start with,” Limitovsky said during a meeting with finance officials.

Finance Undersecretary Mark Joven, who is assisting AIIB in developing its project pipeline, said several water projects and at least two long-span bridge projects are now being discussed for possible financing.

Joven also proposed for the AIIB to look into the possibility of co-financing with the Asian Development Bank (ADB) the Metro Rail Transit-Line 4, which will run from Ortigas to Taytay, Rizal.

The AIIB has so far approved one project in the Philippines, namely, the Metro Manila Flood Management Project, which is co-financed with the World Bank. 

Meanwhile, Finance Secretary Carlos Dominguez has encouraged the AIIB to explore the possibility of partnering with the Development Bank of the Philippines (DBP) in funding projects under the Duterte administration’s Build Build Build program.

In response, Limitovksy said the AIIB is open to this proposal, as it is one of the financing models currently being explored by the bank.

Limitovsky said he and some AIIB officials have already met with DBP officials, who explained to them the bank’s thrust toward development finance.

He said the AIIB is also studying the possibility of financing private sector-led infrastructure projects as another way to expand its presence in the Philippines.