Philippines to secure additional $700 million loan for vaccines

MANILA, Philippines — The Philippines is expecting to secure approval of $700-million in loans from the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) by next month to immediately procure vaccines against COVID-19.

Based on the project document released by AIIB, a total of $764.17 million is needed to finance the Second Health System Enhancement to Address and Limit COVID-19 under Asia Pacific Vaccine Access Facility Project (HEAL 2).

The project aims to support the Philippine government in the rapid procurement of eligible COVID-19 vaccines.

Of the total project cost, $400 million will be funded by the ADB, $300 million will be lent by AIIB, while the remaining $64.17 million will be shouldered by the government.

Financing approval is expected by March, while the estimated date of loan closing is September 2024.

The project is supported under AIIB’s COVID-19 Crisis Recovery Facility and co-financed with the ADB for the procurement of vaccines eligible under the latter’s Asia Pacific Vaccine Access Facility (APVAX) program.

The loan is expected to increase the percentage of the population to be vaccinated and the disaggregation of the population vaccinated by priority groups such as frontline workers and vulnerable populations, gender, and age.

The project will be categorized as “effective gender mainstreaming,” as it will expand social assistance for the poor and vulnerable with clear linkages to women’s welfare.

The government’s inoculation drive was supposed to start this month, but the arrival of COVID-19 vaccines from Western countries and China have been delayed.

European pharmaceutical firms want to insert an indemnification clause in vaccine purchase agreements so that the companies won’t be held liable for adverse effects. Congress has vowed to pass an indemnification bill this week.