ADB to prioritize funding for Mindanao
The Asian Development Bank (ADB) is preparing $770 million in additional loans to the Philippines this year as it commits to prioritize supporting development projects in Mindanao.
In a statement released late Wednesday, the Manila-based multilateral lending institution announced that ADB president Takehiko Nakao – who is seeking a fresh five-year term – met with President Duterte to reiterate support for the government’s 10-point economic agenda and to discuss how the bank can support its drive to promote inclusive growth, reduce poverty and increase transparency in government transactions.
ADB has specifically com- mitted to support projects aimed at instituting a more progressive tax system and effective tax administration, increasing competitiveness and ease of doing business, accelerating infrastructure development with public-private partnerships playing a role, promoting rural development and value chains, investing in human capital such as health and education, and strengthening social protection through various means that include conditional cash transfers.
Priority would be given to peace and development projects in Mindanao through the rehabilitation of roads, promotion of small- and medium-sized enterprises and capacity building in local government units.
ADB said it is collaborating with the Mindanao Development Authority and other regional development agencies for these endeavors.
In the first half of 2016, the development bank approved $583 million worth of loans for various projects covering conditional cash transfers, water transmission improvement in Metro Manila and surrounding areas, as well as water supply development in municipalities.
“ADB is preparing $770 million in additional loans for the rest of the year, related to youth employment, local government financial management and road improvement in Mindanao,” a bank statement read. “Based on further discussions with the new administration, ADB is ready to make additional increases to assistance in the coming years. ADB will also look for opportunities to increase its non-sovereign operations (loans, equity investment and guarantees to the private sector).”
Nakao also commended the administration for what he called clarity of its economic agenda.
“I was very impressed with President Duterte’s clear messages on building confidence on public service delivery, respecting contracts and transactions already approved and awaiting implementation, removing red tape and fighting corruption,” he said.