ADB approves $100-M loan for PH infra projects

The Asian Development Bank (ADB) approved a loan for the Philippines to support the Duterte administration’s ambitious infrastructure program that aims to further spur the country’s robust economic expansion.

In a statement, the Manila-based multilateral institution announced yesterday that the ADB board approved a $100-million loan for the government’s “Build, Build, Build” program, the centerpiece of President Rodrigo R. Duterte’s 10-point socioeconomic agenda.

ADB said the new loan, along with the recently approved $5 million technical assistance grant, serves as a “catalyst” for the government’s project management and monitoring system.

“It will strengthen the government’s project facilitation and monitoring systems, reduce infrastructure bottlenecks, and help relevant agencies systematically monitor project progress and address operational issues at every stage of project planning, construction, and operation,” ADB said.

The new facility builds upon ADB’s experience in supporting the PublicPrivate Partnership (PPP) Center for the Philippines, which has boosted the government’s ability to identify, finance, and implement PPP projects.

The total cost of the facility is $164.06 million, with the government of the Philippines contributing $64.06 million. The project is expected to be completed in the second quarter of 2021.

The new loan approved by the ADB is under the Philippines’ infrastructure preparation and innovation facility, which will help the government in accelerating the delivery of “high quality public infrastructure projects.”

The facility will assist two key agencies — the Department of Transportation and the Department of Public Works and Highways — in preparing flagship infrastructure projects under the Build, Build, Build program using international best practices.

In all, it is estimated to spur $3.8 billion in public infrastructure investments in national roads, railways, bridges, flood control, ports, and airports, which in turn will add as much as $10 billion to the country’s gross domestic product (GDP) between 2019 and 2024.

Richard Bolt, ADB Country Director for the Philippines said the flagship infrastructure projects under the “Build, Build, Build” program will spur economic growth and improve people’s living standards.

“Better infrastructure will lower the cost of doing business, shorten travel times, and usher in more economic opportunities in remote areas. It will also make it easier for people to access education, healthcare, and other social services,” Bolt said.

“We look forward to working with the government to develop a timely, highquality project preparation process for effective, innovative infrastructure projects in the Philippines,” he added.

The Build, Build, Build program aims to increase public investment and accelerate infrastructure delivery.

Public spending on infrastructure is expected to reach 7.4 percent of GDP by 2022, up from the 5.3 percent target this year and less than 3 percent from 2010 to last year.