$1.86-B ADB projects in PHL focus on infra, climate change, social sectors

A $100-million river basin project in Agusan, a $500,000 grant for electricity consumer protection, and a $1-million technical assistance grant for a sustainable urban transport project in Davao are among the $1.86 billion in loans and $21.6 million in grants the Asian Development Bank has programmed for the Philippines for 2012-2014.   “The lending program has been adjusted to align with the priorities of the government and increased investments in infrastructure, climate change mitigation, and social services are proposed,” the ADB said in its country operations business plan for the Philippines.   “ADB support for medium-term policy reforms will be continued and complemented by the proposed Increasing Competitiveness of Inclusive Growth Program,” the ADB also said.   Power sector aid   Co-financing from government and other sources are needed for the technical assistance (TA) grants. The ADB approved 14 TA projects from February 2011 to April 2012.   Most recently approved is a $500,000 grant to the Department of Energy (DOE) on consumer protection as part of power sector reforms.   The grant is designed to enable “empowerment of electricity consumers and capacity building for government” is part of the measures for the electricity market competition, open access and a customer switching system.   In progress since March 2011 and running for 30 months, is a grant to “pilot and develop viable business models for rural community-based renewable energy in Mindanao.”   The ADB noted, while “the Philippines achieved 100 percent of rural electrification in 2009 at the barangay level, there are still about 4.3 million still unenergized households all over the country, particularly in Mindanao.”   The grant seeks to craft “a business model for livelihood development using renewable energy in the Caraga region of Mindanao.”   Being developed are five pilot systems using microhydro, solar photovoltaic, small wind, and other indigenous sources with an estimated capacity of 200 kilowatts (kW) to serve the energy needs of about 1,500 households in the region.   ADB is using $2 million from the Japan-funded Clean Energy Financing Partnership Facility administered by the bank. The National Electrification Administration is the executing agency.   Agusan river basin   Focus of the Agusan river basin project is the biologically diverse Agusan Marsh and Wetland Sanctuary, which covers 40,000 hectares.   The ADB said it is involved, because “… abundant water resources and important ecosystems of the ARB are inadequately managed and underutilized, limiting their contribution to the economic growth and development in the basin and exposing vulnerable communities to frequent flooding.”   The project addresses environmental and natural resources degradation due to development in the watershed area, particularly from mining and wood processing plants, and agricultural operations.   Domestic wastewater, solid waste disposal, and sedimentation due to erosion cause serious water quality problems in the Agusan river basin, according to ADB.   The components of the 2012-2014 business operations plan include:   a shift from 2010 to 2011 of the Road Sector Institutional Development and Investment Project Phase 1   a shift from 2011 to 2012 of the Comprehensive Development for the Agusan River Basin Project   a shift from 2011 to 2012 of the Increasing Competitiveness for Inclusive Growth Program (Subprogram 1) with the amount increased from $250 million to $350 million   a shift of the Water District Development Sector Project from 2010 to 2013   a shift of the Education Improvement Sector Development Program (formerly Southern Philippines Secondary Education Project) from 2012 to 2013 and increase of amount from $100 million to $300 million   a reduction of the amount of the Local Government Finance and Budget Reform Program (Subprogram 2) from $250 million to $200 million   the addition of the Urban Water Supply and Sanitation Project ($70 million) in 2012   the addition of the Disaster Risk Financing Project ($70 million) in 2013   the addition of the Energy Efficient Electric Vehicle Investment Program ($200 million) in 2011   a drop from the pipeline of the Philippine Basic Urban Services Investment Project and   the postponement of the Power Distribution Sector Reform Program, the Integrated Coastal Resource Management II Project, and the Mindanao River Basin Project.   The Philippines is the fifth largest borrower of ADB in terms of cumulative loan amount, accounting for 8 percent of the bank’s total sovereign lending. It also accounts for 6 percent on the bank's nonsovereign operations and is a major supplier of consultancy services under ADB-funded investment and technical assistance projects. —Earl Victor Rosero/VS GMA News