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ADB earmarks $4-B lending program for Philippines in 2023

Manila-based Asian Development Bank (ADB) has allocated about $4 billion worth loan financing this year to support the Philippines’ growth initiatives.

During a media briefing in Mandaluyong City on Tuesday, ADB country director for the Philippines Kelly Bird said the $4-billion 2023 lending will focus on eight projects and programs, four of which are investments on infrastructure development.

“We are focusing on eight programs and projects for approval this year,” Bird said.

The lending program will finance the following projects of the ADB:

  •     Support for Post-COVID-19 Business and Employment Recovery Program, Subprogram 1 - $500 million
  •     Competitive and Inclusive Agriculture Development Program, Subprogram 2 - $500 million
  •     Inclusive Finance Development Program, Subprogram 3 - $300 million
  •     Build Universal Healthcare Program, Subprogram 2 - $400 million
  •     Davao City Public Transport Modernization Project - $1.0 billion
  •     Integrated Floods Protection Resilience and Adaptation Project-Phase 1 - $303 million
  •     Bataan Cavite Interlink Bridge Project, first tranche - $650 million (ADB) and $350 million (Asian Infrastructure Investment Bank)
  •     Infrastructure Preparation and Innovation Facility-2 - $300 million

Bird said the ADB also has a standy $30-million lending program for Project Development and Monitoring Facility for Public-Private Partnerships.

The ADB is forecasting the Philippine economy will grow by 6% this year, on the back of rising domestic demand and a recovery in the services sector, particularly tourism.

The expected modest growth rate this year is lower than the 7.6% gross domestic product (GDP) recorded in 2022.

Nonetheless, the ADB’s growth outlook falls within the economic managers trimmed growth forecast of 6% to 7% for this year, citing external headwinds such as the slowdown in major advanced economies.

The ADB said the Philippine economic growth is expected to moderate “but will remain on a healthy expansion mode, underpinned by rising domestic demand and a recovery in services particularly tourism.”—AOL, GMA Integrated News