The Asian Development Bank (ADB) said Friday it approved a $30-million loan to support public–private partnership (PPP) projects in the Philippines and help the country strengthen infrastructure development, advance climate action and enhance economic competitiveness.
It said the loan would replenish the Project Development and Monitoring Facility (PDMF) managed by the government’s Public–Private Partnership Center (PPPC) to support the design and implementation of bankable PPP projects.
It will also help enhance the capacity of implementing agencies and local government units (LGUs) to develop and manage these projects, it said.
“The Philippines is considered one of the leaders in the Asia and the Pacific region in the use of PPPs as a modality for addressing infrastructure gaps and pursuing sustainable growth and development,” said ADB Philippines country director Pavit Ramachandran.
“Through this new loan, ADB is helping ensure the continuous preparation of bankable and feasible climate-resilient PPP projects in the country as well as the availability of global expertise for successful PPP implementation,” said Ramachandran.
The loan will support as many as 35 national and local PPP projects from 2025 to 2029, with all projects undergoing climate risk screening and management to ensure alignment with the Philippines’ nationally determined contribution.
These projects will cover railways, roads, transport network improvements and essential community facilities, contributing to the improvement of living standards for Filipinos.
A comprehensive capacity-building program in developing PPP projects will be created for the PPPC, implementing agencies and LGUs.
The loan will also support the establishment of a project evaluation framework in emerging PPP sectors to meet diverse and expanding PPP demands as well as a contingent liabilities evaluation framework to ensure fiscal sustainability.
The ADB said it has been supporting the creation of an enabling environment for infrastructure development through private sector participation, leveraging various policy loans such as the Expanding Private Participation in Infrastructure Program Subprogram 1 and 2, and technical assistance.
It also assisted with the formulation and enforcement of the implementing rules and regulations of the PPP Code.
The new loan will facilitate the effective execution and delivery of PPP projects, along with the Public Financial Management Reform Program Subprogram 1 recently approved by ADB.
