ADB to lend $4.98 billion to Philippines this year

MANILA, Philippines — The Asian Development Bank (ADB) is eyeing to extend $4.98 billion in loans to the Philippines for this year for projects to support the country’s growth.

“ADB’s lending program for 2024 is estimated at $4.98 billion,” ADB Philippines country director Pavit Ramachandran said in an email to The STAR.

This forms part of the ADB’s upcoming country partnership strategy (CPS) with the Philippines for 2024 to 2029, which provides the strategic framework for the ADB’s engagement with the country to help achieve development outcomes.

“The Philippine CPS for 2024 to 2029 is scheduled for board approval in August 2024,” Ramachandran said.

The upcoming CPS for the Philippines for 2024 to 2029 will have the following strategic priorities: strengthening human development, boosting economic competitiveness and quality infrastructure and scaling up nature-based development and disaster resilience, he also said.

Furthermore, the new CPS will be aligned with goals set by the government under the Philippine Development Plan 2023-2028, which serves as the country’s overall development blueprint to reduce poverty and generate more and better jobs through sustained high economic growth.

Earlier, Ramachandran said the overall aim of the upcoming CPS is to align with the Philippines’ plan to become an upper middle-income country.

National Economic and Development Authority Secretary Arsenio Balisacan said earlier, the country is expected to attain upper middle-income status by next year if the economy achieves at least six percent growth this year and sustains a robust economic performance next year.

The Philippines is part of the lower middle-income country grouping with its gross national income per capita of $4,230 in 2023.

The ADB has been helping the Philippine government in addressing challenges like poverty, inequality and climate change, as well as in enhancing resilience, improving governance and institutional capacity and promoting gender equality.

It is also supporting infrastructure investments in the country to improve regional connectivity.

ADB’s CPS for the Philippines covering 2018 to 2023 focused on three pillars: accelerating infrastructure and long-term investments, promoting local economic development and investing in people.