Phl gets ADB loan to boost competitiveness

The Asian Development Bank (ADB) will extend a $350-million program loan to help improve Philippine business competitiveness and lay out policy reforms for its Public Private Partnership (PPP) program.

Through the program loan, known as the Increasing Competitiveness for Inclusive Growth program, a competition policy and best practice regulation will also be developed, while the policy framework for PPP will be strengthened.

It will also outline “a mix of policy reforms and programs to promote competitiveness and develop labor skills among out-of-school youth,” the ADB said.

Kunio Senga, director general of the ADB’s Southeast Asia Department, noted that there has been marked improvement in the Philippines’ global competitiveness.

“But regulation, lack of domestic competition in key sectors, under-investment in infrastructure and a mismatch of skills in the labor market are keeping the country from realizing its full potential,” he said.

To help young people better integrate into the labor market and develop workplace skills, the Department of Labor and Employment and the ADB will design a youth job search program, called MyFirstJob, which will be piloted in 2013. The initial program will provide up to 1,600 youth with career counseling services, grants for vocational training, and internships with employers.

MyFirstJob is one of several initiatives that will be used to make the labor market more inclusive. Others include the tourism industry-led skills development program and a new tourism quality assurance and accreditation system that will improve skills and competitiveness in the tourism industry.

Earlier, Australia placed $15 million in support for the Philippine government’s effort to improve the country’s infrastructure through PPP projects. The money will be provided through a grant administered by the ADB.

Of the total grant, $9 million will go toward the Philippines’ Project Development and Monitoring Facility (PDMF) and $6 million will finance capacity-building initiatives in various government agencies. The PDMF is a revolving funding facility that supports PPP project preparations.

The new funding comes on top of the $7-million funding Australia provided for PPP development in 2011.

Early last year, ADB, Australia, Canada and the Philippines earmarked $16.7 million to improve the PPP-enabling environment and provide funding to PDMF to develop, competitively tender, and monitor implementation of PPP projects.

The ADB hoped that with the funding, least 12 PPP projects will be implemented or ready by 2016, up from the original target of five projects by the end of 2013. The first solicited PPP project – a new four-kilometer four-lane toll road south of Metro Manila – was successfully bid out in December 2011.