ADB OK’s bigger PHL program

THE ASIAN Development Bank (ADB) said on Thursday that its Board of Directors has approved a $7.8-billion lending pipeline for 2018-2021, ramping up support for transport infrastructure, local governance and social development in line with the Duterte administration’s priorities.

The total allocation for ADB’s new country partnership strategy with the Philippines is more than the $5 billion approved for 20112017.

About 47% of the total lending pipeline will go to transport, followed by public sector management with 21% and finance sector reform which will get 13%.

This compares to the previous program under which public sector management took the biggest share at 54%, followed by education and finance reform with 15% and 12%, respectively.

“This country partnership strategy really reflects a historic shift in our engagement with the Philippines and I think that shift has been provided by this government’s socioeconomic agenda.” ADB Country Director for the Philippines Kelly Bird said in roundtable discussions on Thursday at the ADB headquarters.

“Way back in 2005, it was already pointed out that infrastructure is a key constraint. And not only is it relatively poor compared to the other ASEAN (Association of Southeast Asian Nation) countries, but within the country the dispersion of infrastructure is disproportionate,” ADB Principal Country Specialist for the Philippines Joven Z. Balbosa said in the same briefing.

Projects include big-ticket items such as the Malolos-Clark Railway, North-South Commuter Rail, Metro Manila Bridges and Bataan-Cavite Long-Span Bridge.

Mr. Balbosa said poverty incidence in the country is “still high”, even as he noted that “while there’s still is a lot that needs to be done, there are achievements so far; substantial achievements.”

He noted that investments in infrastructure are now equivalent to about five percent of gross domestic product (GDP), from an average of around two percent in 2010-2016.

The government aims to cut poverty incidence to 14% in 2022 from 21.6% in 2015, with infrastructure spending targeted to be equivalent to 7.3% of GDP by 2022 from last year’s 5.6%. —