The Asian Development Bank on Friday expressed support to the infrastructure projects that the administration of President Rodrigo Duterte plans to build.
ADB president Takehiko Nakao met with two of Duterte’s economic managers—Finance Secretary Carlos Dominguez III and Economic Planning Secretary Ernesto Pernia—to express support for the administration’s 10-point economic agenda, particularly infrastructure development.
“The recent strong growth of the Philippines provides a foundation for further sustainable growth to fully realize this country’s enormous potential,” said Nakao.
“Our support will be tailored to the government’s socio-economic and poverty reduction priorities, and to the country’s middle-income status. We are looking forward to further discussions on how we can best support the country,” he said.
Nakao said aside from support in accelerating infrastructure development with special attention to the role of public-private partnerships, ADB would also assist in rural and value chain development in agriculture; improving human capital investment including health and education; and social protection through conditional cash transfer.
Nakao said ADB could help the country implement innovations in infrastructure development, based on the bank’s extensive experience and access to global knowledge and advanced technologies.
Dominguez welcomed the commitment from ADB, saying the bank’s full backing would go a long way in helping President Duterte deliver on his electoral mandate to bring progress to all Filipinos.
“This is because the strengthened partnership between the bank and the Philippine government on the Duterte presidency would, as conveyed by Mr. Nakao, focus on key areas that the 10-point agenda itself aims to harness to enable our people to truly benefit from a strong economy that the ADB projects to grow beyond 6 percent in 2017,” Dominguez said.
ADB said the Philippines experienced strong economic growth in recent years. Gross domestic product grew 5.9 percent in 2015 and is expected to rise to 6 percent in 2016 and 6.1 percent in 2017, led by higher private consumption and investment.
“Unemployment is hovering at historical lows of 6.1 percent as of April 2016. But challenges remain to create better jobs and reduce underemployment especially in rural areas,” ADB said.
Nakao commended the Duterte’s administration’s goal of spreading the benefits of strong growth.
He said the country could harness its vast potential by tapping its young and educated population in pursuit of higher productivity and job creation, especially in such areas as small- and medium-enterprises, tourism and agri-business.
He also reiterated ADB’s commitment to support the government’s efforts to bring lasting peace and development to Mindanao.
ADB is working with local authorities to prepare the Mindanao Development Program and on various projects to develop road infrastructure. These include the upgrading of national roads in central, southern and western Mindanao, which will improve the area’s linkages with national and regional markets.