ADB sets $4 billion lending program for Philippines

MANILA, Philippines — The Asian Development Bank (ADB) is set to lend around $4 billion to the Philippines this year to support the government’s reforms and infrastructure projects.

In a briefing yesterday, ADB Philippines country director Kelly Bird said the multilateral  institution has set the lending program for the country for this year at $4 billion.

“We are focusing on eight projects and programs for approval this year,” he said.

Of the eight eyed to be financed this year, he said four are policy-based loans that support the government’s reform agendas.

He said two of the policy-based loans for this year have already been approved such as the Support for Post-Coronavirus Disease 2019 Business and Employment Recovery Program subprogram 1 amounting to $500 million, and the Competitive and Inclusive Agriculture Development Program subprogram 2 worth $500 million.

Meanwhile, two other policy-based loans are up for approval of the ADB’s board of directors for this year. Among these is the Inclusive Finance Development Program subprogram 3 amounting to $300 million.

Another policy-based loan eyed for this year is the Build Universal Healthcare Program subprogram 2 worth $400 million.

Bird said four infrastructure investments are programmed for this year. These include the Davao City Public Transport Modernization project with $1 billion worth of financing and set to be submitted to the ADB board for consideration in June.

The project will involve the procurement of about 1,000 buses, with 40 percent to be e-buses.

Bird said the ADB is also looking to secure approval for phase 1 of the Integrated Floods Protection Resilience and Adaptation Project worth $303 million in June of this year.

Other infrastructure investments lined up for this year are the first tranche of financing worth $650 million for the Bataan Cavite Interlink Bridge Project as well as $300 million for the Infrastructure Preparation and Innovation Facility 2 to be used to prepare feasibility studies, as well as detailed engineering designs for large and complex projects under the government’s infrastructure development program.

In addition, Bird said the ADB has a standby loan worth $30 million for the Project Development and Monitoring Facility (PDMF) managed by the Public-Private Partnership (PPP) Center for transaction advisory services for PPP projects.

“We’re looking at exploring a loan of about $30 million that will support the PDMF, particularly now as the government has increased its focus on PPPs for infrastructure projects,” he said.

Last month, the National Economic and Development Authority (NEDA) Board chaired by President Marcos approved 194 infrastructure flagship projects amounting to a total of P9 trillion.

Of the 194 projects, NEDA Secretary Arsenio Balisacan said 45 would  be financed through PPPs.