ADB aims to strengthen ties with private sector

CEBU, Philippines – The Asian Development Bank (ADB) aims to strengthen its presence in Cebu by forging a closer relationship and partnership with the private sector.

ADB Philippines Country Director Neeraj Jain said that as the agency approved the $4 billion development support funds for the next six years from 2011 to 2016, it is very important that ADB would know the priority development needs in the regional areas of the Philippines, specifically Cebu and Davao.

In Cebu, ADB has directly provided financial support to the private sector through the $120 million loan deal with Korean power firm KEPCO.

Jain said ADB is ready to provide developmental funding to other private organizations especially those that belong to the priority sectors such as energy, infrastructure, and education, among others.

Jain was in Cebu yesterday along with other ADB officials for the regional consultation at the same time they met with Cebu Provincial Governor Gwendolyn Garcia.

During his discussion with Garcia, Jain said that they have identified several sectors in Cebu that need immediate attention such as infrastructure development, renewable energy, as well as education issues that support the robust growth of Business Process Outsourcing (BPO) industry here.

In its bid to forge much closer relationship with the private sector, Jain said ADB is planning to connect with Cebu-based companies, one of which is the Aboitiz Group, among others.

ADB is doing a comprehensive medium-term Philippine development plan which will be implemented by 2011 under the US$3.5 billion to US$4 billion financial support for the Philippines starting next year.

Prior to the implementation of the medium-term plan, ADB is doing an eight-month consultation, and comprehensive market study for the Philippines, finding out the priority sectors that need to be given attention and should be given the developmental budget.

“We are going across the country in the next six to eight months to draw out our systematic assessment, and hire Filipino minds to help us analyze why the Philippines, for instance, have not grown as fast as its neighboring countries like Thailand and China,” Jain said.

Neeraj admitted though, that in the last few years, ADB has not been so active in providing support in Cebu, especially with the private sector.

The decision to strengthen its private sector support this time, he said is pushed in order to boost the economic development for the Philippines, as private sector investments is very important in order to strengthen the economy.

In order for the Philippines to move forward in the next few years, it has to spend at least five to six percent of its GDP (Gross Domestic Product) or equivalent to US$ 9 billion to US$20 billion. This should be spent on developing roads, airports, railways, rural infrastructure, and others.

The Philippines is not only host to ADB but is also one of the founding members and the 11th largest shareholder. It is the fifth largest borrower, accounting for about eight percent of total sovereign and non-sovereign lending.

In 2009, ADB approved loans amount to a record US$1.76 billion. It also approved a new operational program indicatively amounting to US$2.8 billion for lending in the Philippines under the Country Operations Business Plan (COBP- 2010-2012).

ADB is a multilateral development bank owned by 67 countries, 48 from the region and 19 from other parts of the world. ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance (TA). (THE FREEMAN)