MANILA, Philippines — The Asian Development Bank (ADB) has approved a $30-million loan to support the preparation of public–private partnership (PPP) projects in the country.
In a statement yesterday, the multilateral lender said the loan would go to the Project Development and Monitoring Facility (PDMF), managed by the PPP Center, to support the design and implementation of bankable PPP projects.
The PDMF is a revolving fund for project preparation that is offered to develop projects and get them ready to move to the implementation stage.
Through the loan, the ADB will help enhance the capacity of implementing agencies and local government units (LGUs) to develop and manage PPP projects.
“The Philippines is considered one of the leaders in Asia-Pacific in the use of PPPs as a modality for addressing infrastructure gaps and pursuing sustainable growth and development,” ADB Philippines country director Pavit Ramachandran said.
“Through this new loan, ADB is helping ensure the continuous preparation of bankable and feasible climate-resilient PPP projects in the country, as well as the availability of global expertise for successful PPP implementation,” he added.
Earlier this week, PPP Center deputy executive director Eleazar Ricote said they expect to support around 35 PPP projects from 2025 to 2029 through the loan.
All projects to be supported by the loan will undergo climate risk screening and management to ensure they are in line with the Philippines’ nationally determined contribution, or the commitment to reduce emissions.
The ADB said the projects will cover railways, roads and transport network improvements, as well as essential community facilities that will help improve the quality of life.
In addition, there will be a comprehensive capacity-building program for developing PPP projects targeted at the PPP Center, implementing agencies and LGUs.
The loan will also be used to support the creation of a project evaluation framework in emerging PPP sectors, as well as a contingent liabilities evaluation framework to ensure fiscal sustainability.
The ADB has been supporting efforts to create an enabling environment for infrastructure development in the country through private sector participation via policy loans such as the Expanding Private Participation in Infrastructure Program (EPPIP) Subprograms 1 and 2 and technical assistance.
It also provided assistance in the formulation and enforcement of the PPP Code’s implementing rules and regulations.
For this year, Ricote said the PPP Center approved 17 PPP projects that applied for PDMF support.
These include the Cavite Bulk Water Supply Project, the La Union Bulk Water Facility Project, the PPP for Schools Infrastructure Project Phase III, the Halls of Justice Project, the Clark National Food Hub, the Philippine Nuclear Research Institute’s Nuclear Medicine Research and Innovation Center operations and maintenance, the Iloilo-Capiz-Aklan Expressway Project, the Metro Rail Transit (MRT)-3 and MRT-4 operations and maintenance and the acquisition of equipment and operations and maintenance of the New Cebu International Container Port Project, as well as the Davao Public Transport Modernization Project, the Poro Point Seaport Modernization Project, the Philippine Automated Fare Collection System Project, and the Senate-Department of Education Teacher’s City Project.
Also approved for PDMF support are the Ninoy Aquino International Airport, Laguindingan Airport and Bohol Airport PPP projects, particularly for the independent consultants who will assist and oversee project implementation.
As of Dec. 9, there are 175 projects with an estimated cost of P2.546 trillion in the PPP pipeline.