The Asian Development Bank said it is lending over $7 billion mainly to support the government’s infrastructure projects.
The Ortigas-based multilateral lender signed an agreement with the Finance Department and the National Economic and Development Authority for an indicative $7.1-billion sovereign lending program to the Philippines from 2019 to 2021.
It said the proposed lending program would mainly support the government’s ‘Build, Build, Build’ program. About two-thirds of the ADB pipeline, or about $4.5 billion, would be allocated for projects to connect regions and communities and manage urbanization such as railways, bridges, roads and flood management, it said.
The bank said the remaining third of the pipeline would focus on policy support and social assistance in the areas of inclusive finance, capital market development, local government development and youth employment. The agreement covers an indicative three-year rolling program that is revisited annually.
ADB reaffirmed its strong commitment to support the government in raising the country’s growth trajectory and reducing poverty and income inequalities.
National Economic and Development Authority director-general and Economic Planning Secretary Ernesto Pernia witnessed the signing ceremony on June 29. Other officials who attended the event were from the Public Works, Transportation and Interior and Local Government Departments.
“I am very happy about this program,” Pernia said.
“ADB has been very cooperative and helpful in our objectives to sustain our economic growth and achieve inclusive development. This will help bring us closer to our longer-term vision of a prosperous, middle-income country where no one is poor by 2040,” he said.
Finance assistant secretary Maria Edita Tan said the ADB was a very responsive partner for development. “When we asked them to consider co-financing some of the large infrastructure projects under the BBB program, ADB immediately stepped up to the challenge,” Tan said.
ADB’s Country Operations Business Plan 2019–2021 will focus on the strategic priorities of accelerating infrastructure and long-term investments, promoting local economic development and investing in people to support the government’s objective of reducing poverty incidence to 14 percent of the population by 2022, from the current 21.6 percent.
ADB country director for the Philippines Kelly Bird said the bank was committed to working closely and collaboratively with the Philippine government to ensure that “we deliver on our pipeline of projects.”
ADB, established in 1966, is owned by 67 members”•48 from the Asia-Pacific region. ADB operations totaled $32.2 billion in 2017, including $11.9 billion in co-financing.