ADB okays fresh $7.1-B lending program for PH
The Philippine government and the Asian Development Bank (ADB) have signed a memorandum of understanding covering an indicative amount of sovereign lending program to the Philippines for the next three years.
The National Economic and Development Authority (NEDA) and Department of Finance (DOF), together with the Manila-based multilateral institution signed the agreement for latter’s sovereign lending program amounting to $7.1 billion.
According to the ADB, the indicative sovereign lending program will cover the years 2019 to 2021.
Socioeconomic Planning Secretary Ernesto M. Pernia said the ADB’s latest lending plan reaffirmed its strong commitment to support the government in raising the country’s growth trajectory and reducing poverty and income inequalities.
“ADB has been very cooperative and helpful in our objectives to sustain our economic growth and achieve inclusive development. This will help bring us closer to our longer-term vision of a prosperous, middle-income country where no one is poor by 2040,” Pernia said.
The government’s “Build, Build, Build” (BBB) program will be supported by the proposed lending program, with two-thirds of the ADB pipeline, or about $4.5 billion, allocated for projects that connect regions and communities and manage urbanization.
The remaining one-third of the pipeline will focus on policy support and social assistance in the areas of inclusive finance, capital market development, local government development, and youth employment.
The agreement covers an indicative three-year rolling program that is revisited annually.
“ADB has been a very responsive partner,” said Finance Assistant Secretary Maria Edita Tan. “When we asked them to consider co-financing some of the large infrastructure projects under the BBB program, ADB immediately stepped up to the challenge.”
ADB’s Country Operations Business Plan 2019–2021 will focus on the strategic priorities of accelerating infrastructure and long-term investments, promoting local economic development, and investing in people to support the government’s objective of lowering poverty.
“ADB is committed to working closely and collaboratively with the Government of the Philippines to ensure that we deliver on our pipeline of projects,” said ADB Country Director for the Philippines Kelly Bird after the signing ceremony.
ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in co-financing.