THE Asian Development Bank (ADB) is earmarking $4 billion worth of loan financing for the Philippines this year to support development projects.
In a press briefing on Tuesday, ADB Philippines Country Director Kelly Bird said this year’s lending program will be focused on eight projects and programs.
“Our 2023 lending program will be approximately $4 billion and we are focusing on eight programs and projects for approval this year, four of which are what we call policy-based loans,” Mr. Bird said.
The first two projects of the ADB were approved earlier in January, in which the lender aimed to support post-pandemic business recovery, and reforms in the agriculture sector.
“We have two policy-based loans that are going through consideration, the next one is the ‘Inclusive Finance Development Program’ of $300 million. This is the third and final program in our inclusive finance,” Mr. Bird said.
The loan aims to boost financial inclusion, specifically for the bottom 30% households in the country.
The next policy-based loan is the ADB’s Build Universal Healthcare Program Subprogram 2 worth $400 million. The first subprogram was approved in 2020 and this would support the government’s reforms in the health sector.
Also, the ADB is looking to finance four infrastructure programs. These include the Davao City Public Transport Modernization Project ($1 billion), Integrated Floods Protection Resilience and Adaptation Project – Phase 1 ($303 million), the Bataan Cavite Interlink Bridge Project, and the Infrastructure Preparation and Innovation Facility ($300 million).
The ADB is planning to submit these projects for board consideration in June.
The Davao City project would introduce modern bus system, including electric buses. The government plans to procure 1,000 buses of different sizes, of which 40% would be e-buses.
Mr. Bird said this is ADB’s first project in the Philippines that will replace the fossil fuel transport system with a modern public transport system with ticketing system.
“The National Government and the City of Davao developed a very comprehensive program for impacted persons, particularly jeepney drivers, owners, and their families. This will ensure that the movement away from fossil fuel transport system to a more modern one is also adjusted for those who are impacted by the reform,” Mr. Bird said.
The next project focuses on building infrastructure for flood protection in three river basins in the country, two in Mindanao and one in Luzon. The goal of the project is to prevent floods in towns and farm areas around those three river basins.
“We have been working with the Department of Public Works and Highways on doing feasibility studies for river basins. The Philippines has 18 major river basins. So, we’re providing assistance on most of those basins and these projects are critically important for climate change adaptation,” Mr. Bird said.
Meanwhile, the first tranche of the Bataan Cavite Interlink Bridge Project will be about $650 billion and will be co-financed with the Asian Infrastructure Investment Bank. The ADB is hoping to have this approved in the third quarter of this year. The project is part of the government’s strategy to decongest Manila.
Mr. Bird also said the ADB has a standby $30-million lending program for Project Development and Monitoring Facility for Public-Private Partnerships. — Keisha B. Ta-asan