ADB lending program for Philippines to reach $3.9B in 2021

The Asian Development Bank’s (ADB) sovereign lending program to the Philippines is seen to reach $3.9 billion this year or roughly P188 billion to support investments in the country’s infrastructure, local economic development, and social assistance amid the COVID-19 pandemic.

At a virtual briefing on Wednesday, ADB Philippines country director Kelly Bird said that the multilateral lender’s lending program this year will focus on its “three pillars” of support for the country, namely:

•     Accelerating infrastructure and long-term investments
•     Promoting local economic development
•     Investing in people

Under the investing in people pillar is the $400-million loan it extended to the Philippines last March to help the country purchase vaccines against COVID-19.

The loan forms part of the $700-million Second Health System Enhancement to Address and Limit COVID-19 under the APVAX (HEAL 2) project, $300 million of which is co-financed by the Asian Infrastructure Investment Bank (AIIB).

Meanwhile, the bulk of the ADB’s lending program this year will finance the South Commuter Railway project amounting to $1.75 billion.

Also under infrastructure, the bank is setting aside $180 million for the Metro Manila Bridges project.

“We are focusing on infrastructure projects that have large employment multipliers and support long-term economic growth through improved connectivity," ADB vice president Ahmed Saeed said earlier.

Under local economic development pillar are loans for Davao Public Transport Modernization project ($238 million), Sustainable Palawan Tourism Development project ($96 million), and Local Governance Reform program ($400 million).

The ADB is also extending $400 million in loans for the Facilitating Youth School-to-Work Transition project and another $400 million for the Building Up Implementation and Local-Level Drivers for Universal Health Care program.

“We have designed our new Country Operations Business Plan to help the Philippines overcome the socioeconomic impact of the pandemic. We are focusing on infrastructure projects that have large employment multipliers and support long-term economic growth through improved connectivity," according to Saeed.—AOL, GMA News