ADB starts mobilizing funds for Marawi rehab

The Asian Development Bank (ADB) has started to mobilize funds for the rehabilitation of war-torn Marawi City, its president said.

In a recent briefing, ADB president Takehiko Nakao said the bank is now in the thick of providing technical assistance and resource mobilization for rehabilitation and reconstruction efforts for the southern city demolished by fighting between government forces and Maute terrorists.

“There was the issue in Marawi last year. We were very worried about it, but it was resolved and this is the time to make serious efforts to a speedy and good reconstruction. ADB has already started supporting the process by sending advisers. Also, we have started shifting our existing money for taking care of Marawi’s case,” he said.

In the third quarter of 2017, the multilateral development bank pledged to provide $5.225 million in grant aid to the government to support the rehabilitation of Marawi City, among other forms of assistance.

Nakao said rehabilitation efforts in Marawi should be approached as part of the bigger picture of increasing the competitiveness of the Mindanao region and other lagging regions in the country.

“We should also look at this issue not only at the context of rehabilitation, but also at the context of how we can support the lagging regions in the Philippines,” he said. “We need to give more attention to Mindanao and lagging regions.”

Re-energizing Mindanao’s economy and enabling it to tap into its economic potential is of particular interest to the bank as it is an integral part of the country’s medium term development plan.

The Department of Finance last week signed an agreement with ADB for the provision of a $380 million loan for the Improving Growth Corridors in Mindanao Road Sector Project (IGCMRSP) which would improve the road network in the poorest areas of Mindanao and provide links to international growth corridors. This involves the construction of about 280 kilometers of national primary, secondary and tertiary roads and bridges in the Zamboanga Peninsula and Tawi-Tawi.

Also signed last week was the $300 million loan package for the Encouraging Investment Through Capital Market Reforms Program-Subprogram 2 which would finance continuing capital market reforms in the country meant to accelerating investments in infrastructure particularly by the private sector.