ADB to extend $12.9B worth of loans, grants to PHL ’til ’25

THE Asian Development Bank (ADB) is extending $12.9 billion worth of loans and grants to the Philippines in the next three years under its new assistance framework for 2023 to 2025. The amount is equivalent to P718.659 billion at current exchange rates.

In a news briefing last Wednesday, ADB Philippine Country Director Kelly Bird told reporters that the Manila-based multilateral development bank’s assistance is estimated at $4.3 billion (about P239.553 billion) annually.

This is larger than the 2019 to 2022 program worth $8.7 billion. During the period, ADB programmed P2.9 billion-worth of assistance every year.

“We are discussing with the government the Country Partnership Strategy [CPS] and we are looking at three core strategic pillars that are aligned with President Marcos’s 8-point socioeconomic agenda and it will also be aligned with the development plan that’s forthcoming,” Bird said in ADB’S first onsite news briefing at its headquarters in Manila since lockdowns were imposed to address the pandemic in 2020.

Bird said the three core pillars are climate change and food security; climate smart infrastructure; and Filipino’s well-being which covers projects focused on education, health, social protection, and nutrition, among others.

For climate change and food security, the ADB intends to finance climate change action policy reforms and finance, resource mobilization and institutional capacity building.

Climate, housing

THE ADB will also finance climate investments on mitigation, adaptation and conservation—agriculture, floods protection, irrigation, environmentally sustainable tourism, disaster management and resilience, protecting biodiversity

The Manila-based multilateral development bank also intends to focus on institutional capacity building as well as climate investments on mitigation, adaptation and conservation —agriculture, f loods protection, irrigation, environmentally sustainable tourism, disaster management and resilience, protecting biodiversity.

For climate smart infrastructure, the ADB will prioritize the financing of transport and communication policy reforms such as e-vehicles and digitalization; and institutional capacity building.

An example is the $300-million loan for the Department of Transportation and Department of Public Works and Highways Infrastructure Preparation and Innovation Loan which has a technical assistance support of $5 million to $6 million.

Bird also said ADB will support investments on mass public transport projects, pedestrian walkways, bridges, expressways, and road networks.

In terms of investing in Filipino’s well-being, ADB intends to support projects that seek to address learning losses in education; improve technical and vocational skills development; and business and employment recovery.

ADB will also provide financing for social protection; projects that support vulnerable mothers/ child nutrition and job transition programs; universal healthcare and health sector investments; and, housing for the poor.

Projects supported

BIRD also mentioned a number of projects that will be included in the new CPS. These are: the Bataancavite Interlink Bridge; the Laguna Lakeshore Expressway; MRT 4 (a railway that will connect Ortigas and Taytay); and, the Davao Public Transport Modernization Project.

The list of projects and programs also include: the Integrated Flood Resilience and Adaptation Project Phase 1; Mindanao irrigation project; Post-covid Business and Employment program; Competitive and Inclusive Agriculture Development program; and, the Climate Change Action Plan program.

For 2022, the ADB has a committed lending program of $2.5 billion. This includes the $1.75-billion worth financing for the South Commuter Railway Project Tranche 1 and the $400-million Support to Capital Market Generated Infrastructure Financing, Subprogram 2.

The ADB is also supporting the Climate Change Action program (Subprogram 1), which is co-financed with the French Development Agency (Agence Française de Développement) for 150 million euros while ADB’S portion is $250 million.

The list also includes the $100- million loan for the Supporting Innovation in the Philippine TV ET( technical and vocational education and training) System project.