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ADB to lend $9.4 billion to Philippines through 2023
MANILA, Philippines — Sovereign lending by the Asian Development Bank (ADB) to the Philippines will reach around $9.4 billion between 2021 and 2023, with the bulk going into infrastructure, health and employment recovery projects.
The Manila-based multilateral bank said the Philippines Country Operations Business Plan 2021-2023 supports programs and policies focused on the acceleration of economic recovery, as well as repairing the damage inflicted by the pandemic to business and the labor market.
“We completed discussions with the government back in October. It was important for the ADB and the government to discuss together to ensure a lending program that will support economic recovery in the next three years,” said ADB Philippines country director Kelly Bird in a briefing.
The bank’s infrastructure-heavy lending pipeline for the next three years will see more than 52 percent of the sovereign lending go to the construction of railways, roads and bridges.
About 12 percent of the financing, meanwhile, will help the government expand the public health system through the implementation of the Universal Health Care Act.
For 2021, ADB has firmed up commitments of $3.568 billion comprising seven projects: South Commuter Railway Project Tranche 1; Sustainable Tourism Development Project; Metro Manila Bridges Project; Davao Public Transport Modernization Project; Local Governance Reform Program; Subprogram 2, Facilitating Youth School-to-Work Transition, Subprogram 3; Building Up Implementation and Local Level Drivers for Universal Health Care (SDP).
“For our part, we will be focusing on infrastructure programs that have high fiscal impact multipliers and job creation,” said Oscar Badiola, senior programs officer of ADB Philippines.
Assistance for vaccine procurement is not yet included in the pipeline as the bank has just launched the $9-billion Asia Pacific Vaccine Access Facility (APVAX) that developing member countries can tap to finance the procurement of vaccines for COVID-19.
From this facility, the Philippines is eligible to draw between $400 million up to $500 million.
“We are in discussions with the government on tapping into that facility for financing vaccine procurement in 2021. We are committed to supporting the Philippines in financing the vaccine procurement,” said Bird.
Source: https://www.philstar.com/business/2020/12/18/2064519/adb-lend-94-billion-philippines-through-2023