The Philippine government secured $1.2 billion worth of loans from the World Bank, the Asian Development Bank and the Asian Infrastructure Investment Bank to support the procurement of vaccines against COVID-19.
The loans include $500 million from the World Bank, $400 million from the ADB and $300 million from the AIIB.
The World Bank said Friday its board of executive directors approved $500 million in funding to support the Philippine government’s program to purchase and distribute COVID-19 vaccines, strengthen the country’s health systems and overcome the impact of the pandemic especially on the poor and the most vulnerable.
It said the newly-approved financing would support the Philippines to vaccinate the population based on vulnerability and risk. Priority groups include frontline health workers, senior citizens, indigent communities, followed by priority groups of teachers, government workers, indigenous peoples, and then the remaining population.
Prioritization of vulnerable groups reduces the health and economic consequences of the pandemic, protecting those that are at a high risk of infection and of developing severe COVID and adverse outcomes.
“Procuring and administering vaccines provides the country an added layer of defense against COVID-19 on top of public health measures or interventions like social distancing, wearing of masks, and washing hands,” said Ndiamé Diop, World Bank country director for Brunei, Malaysia, the Philippines and Thailand.
“Inclusive deployment of vaccines in line with the World Health Organization Fair Allocation Framework is critical for preventing grave illness and deaths from COVID-19, opening the economy in earnest, ensuring a resilient recovery, and restoring jobs and incomes,” Diop said.
The additional World Bank financing will also support the Philippines to continue to implement public health measures until a majority of the population has been vaccinated or is deemed safe based on global evidence. The use of web platforms to gather citizen feedback on the vaccination program as well as beneficiary feedback surveys to boost engagement with citizens will help ensure effective implementation.
Meanwhiole, the Philippines became the first recipient of financing support under the Asian Development Bank’s Asia Pacific Vaccine Access Facility with the approval of a $400-million loan that will help the country purchase safe and effective vaccines against the coronavirus disease.
“ADB’s support will boost the Philippine government’s urgent efforts to secure and deploy COVID-19 vaccines for all Filipinos, especially those who are vulnerable, such as frontline workers, the elderly, and poor and marginalized populations, as well as those at increased risk of severe illness,” said ADB president Masatsugu Asakawa.
“COVID-19 vaccines are critical to accelerating the recovery of the Philippine economy, rebuilding livelihoods, and restoring quality jobs. With this financing, ADB seeks to help the country save lives and allow Filipinos to return to normal life as soon as possible,” the ADB executive said.
“COVID-19 vaccines are critical to accelerating the recovery of the Philippine economy, rebuilding livelihoods, and restoring quality jobs. With this financing, ADB seeks to help the country save lives and allow Filipinos to return to normal life as soon as possible,” Asakawa.
The Second Health System Enhancement to Address and Limit COVID-19 under the APVAX (HEAL 2) project will assist the Department of Health in procuring and ensuring delivery to the country of vaccines certified by the COVID-19 Vaccines Global Access Facility and bilateral vaccine suppliers that meet APVAX eligibility criteria.
The project will be supported by $300 million in co-financing from the Asian Infrastructure Investment Bank. The ADB and AIIB loans will together fund the procurement of up to 110 million doses of COVID-19 vaccines for as many as 50 million Filipinos.
HEAL 2 builds on and complements ADB’s Health System Enhancement to Address and Limit COVID-19 (HEAL) project, which was approved in August 2020. In January 2021, ADB approved the reallocation of $25 million under the HEAL loan to fund the government’s advance payments to vaccine suppliers to secure the delivery of vaccines this year. The Philippines has one of the highest numbers of COVID-19 infections in Southeast Asia, with more than 600,000 confirmed cases as of 11 March.
APVAX is ADB’s $9 billion vaccine initiative offering rapid and equitable support to its developing members as they procure and deliver effective and safe COVID-19 vaccines.
Vaccines eligible for financing under the HEAL 2 loan must meet at least one of three APVAX criteria: they have been selected for procurement through COVAX, prequalified by the World Health Organization, or their manufacture is authorized by a Stringent Regulatory Authority (SRA) in the country of production.
Any vaccine supply contract supported by ADB will follow ADB’s procurement rules and guidelines, including its anticorruption and integrity policy. Under the HEAL 2 loan agreement, ADB will pay vaccine suppliers directly. The financing will also follow global best practices on safeguards measures, including waste management of medical supplies.
ADB is also providing technical advisory assistance to the government on vaccine procurement and its national vaccine road map through a development partner coordination working group set up by the Department of Finance.
ADB is delivering technical support to help the government implement and monitor its vaccine prioritization plan, medical waste management program, and vaccine information management system. It is also helping the Philippines expand the coverage of other much-needed routine vaccinations, such as those for the elderly and people with disabilities.