The Finance Department on Monday said the government is preparing big-ticket projects for funding under the Beijing-led Asian Infrastructure Investment Bank, a week after the Senate ratified the country’s membership to the multilateral institution
“The Duterte administration awaits promising development and financing cooperation with the AIIB to help fund the country’s big-ticket infrastructure projects,” said National Treasurer Roberto Tan.
Tan said with Philippines’ formal entry as a founding member of the AIIB, the government could now request AIIB to send a mission to the Philippines to discuss the proposed list of projects prepared by the National Economic and Development Authority for the bank’s financing.
He said the Edsa Bus Rapid Transit project and the Metro Manila Flood Control projects would be among the first to be presented to the AIIB for possible funding.
“These are the projects that are the most prepared in terms of government approvals, feasibility studies and other requirements, and are already in the pipeline. So these projects can be processed most expeditiously for co-financing by AIIB,” Tan said.
Finance Secretary Carlos Dominguez III earlier said the BRT was also supported by the Asian Development Bank while the flood control project was being backed by the World Bank.
Dominguez strongly supported the Philippines’ membership to the AIIB, which, he said, would provide the government “another source of long-term funding at very reasonable interest rate.”
“Achieving full membership in the AIIB is a significant milestone. Completing our domestic procedures for ratification puts us in solidarity with 56 other countries,” Dominguez said.
“AIIB serves as the only multilateral development bank that focuses on infrastructure. The operations and policies of the bank are designed to be lean, clean and green. It is committed to principles of transparency, independence, openness and accountability,” he added.
Tan said the Philippines was “looking at $300 million to $500 million for the initial year” from the AIIB.
“Funds from AIIB will serve as an additional source of concessional financing to support our growing infrastructure requirements. Its terms and conditions are comparable to those of other multilateral development banks,” Tan said.
The Senate, voting 20-1, ratified on Dec. 5 the Philippines’ entry into the AIIB, beating the Dec. 31, 2016 deadline set by the bank for members.
Finance said a briefing paper “AIIB can provide financing to major capital investments of the government and the private sector.”
“AIIB can support the government in reducing the infrastructure gap in the Philippines and accelerating annual infrastructure spending to account for 5 percent of GDP (gross domestic product),” the paper said.
The AIIB is owned by 57 sovereign-member countries with a total capitalization of $100 billion.