The Asian Development Bank has extended $16.38 billion worth of loans and grants to the Philippines over the past 40 years.
The Manila-based multilateral lender said in its latest member data fact sheet it served as a strong development partner to the host country since the bank was established in 1966.
“ADB has been a strong development partner of the Philippines, its host country, with average annual lending of $745 million in the last 10 years,” the bank said.
The Philippines, since its membership with the ADB in 1966, received a cumulative lending, grant and technical assistance amounting to $16.377 billion.
Public sector management got the the highest percentage of the total loans with $3.849 billion, followed by the energy sector with $3.432 billion and agriculture and natural resources and rural development with $2.077 billion.
ADB approved $600 million for the financing of the country’s infrastructure development in 2015.
ADB lent $300 million for its first policy-based operation fully focused on public-private-partnership reforms in the Philippines. “The program will strengthen mechanisms to finance PPPs, improve implementation of PPP projects and strengthen legal and regulatory frameworks,” ADB said.
ADB said to complement support for the PPP program, it approved another $300 million as part of a phased approach to deepen capital markets and nonbank finance. This would increase the availability of long-term private finance to fund infrastructure investments, it said.
Total outstanding balances and commitments of ADB’s private sector transactions in the country as of the end of 2015 reached $150.39 million, representing 1.81 percent of ADB’s total non-sovereign portfolio.
Data showed from 1970 to 2015, cumulative direct value-added official co-financing for the Philippines amounted to $3.4 billion for 53 investment projects and $87.3 million for 64 technical assistance projects.
Cumulative DVA commercial co-financing for the Philippines amounted to $833.9 million for nine investment projects.
Meanwhile, the bank said it planned to increase its assistance to the Philippines in a program-oriented approach.
“This will increase the predictability of ADB resource allocations and government disbursements, strengthen synergy across sectors and operations and provide financing flexibility to suit the assistance required,” it said.
ADB said this year it would provide additional financing to support the nationwide expansion of the government’s conditional cash transfer program.
It also said it would support strengthening of local governance systems and institutional capacities.
“ADB’s first policy-based operation focused on youth employment in the Philippines is expected for approval in 2016. This complements the ADB results-based lending program for senior high schools and builds on a successful technical assistance for JobStart Philippines,” the bank said.
“In Mindanao, ADB will finance a road project to improve the quality of 500 kilometers of national roads,” it said.
ADB said in Metro Manila, it would help ensure sustainable water supply, by financing the rehabilitation and construction of part of a water transmission system from the Angat reservoir.
ADB said it was also undertaking analytical work to prepare the next country partnership strategy for the Philippines.
