ADB to boost annual lending to Philippines to $2.5B

Multilateral lender Asian Development Bank (ADB) on Monday said it is looking at the possibility of increasing its annual lending to the Philippines by over $1 billion.

"We are now thinking of increasing once again our loan to the Philippines, doubling from $1.5 billion average in these three years to $2.5 billion," ADB president Takehiko Nakao said at a press conference in Manila City.

"I would say (from) $1.3 billion to $2.5 billion in the coming years. So from 2019 to 2021, we will have $2.5 billion new loans committed every year," added Nakao.

The latest figure is higher than the nearly $2 billion annual lending under the six-year partnership strategy announced by the multilateral lender in September.

According to Nakao, the Board of the ADB is looking into providing funding for projects involved in education and research, and capital markets.

"These are just examples and (we have) yet to prepare totally, so that's why we can not give documents about it," he explained.

Nakao's remarks were made on the sidelines of the ceremonial exchange of two documents between the ADB and the Philippine government.

This includes the $300-million Expanding Private Participation in Infrastructure Program Subprogram 2, and $300-million the Inclusive Finance Development Program Subprogram 1.

"These two loan packages fall squarely to the national priorities we have identified. They will surely help in achieving rapid and investments-led economic expansion," said Finance Secretary Carlos Dominguez III.

"We look forward to more areas of cooperation in the coming years as the Philippines emerges to meet the challenges of development," he added. — RSJ, GMA News