ADB OKs $200M loan for high-quality, climate resilient infra for PH

Manila-based multilateral lender Asian Development Bank (ADB) has green-lit a $200-million loan for the Philippines to support the country’s preparation for high-quality and climate-resilient infrastructure projects.

In a statement on Friday, the ADB said the technical assistance loan financing for the ongoing Infrastructure Preparation and Innovation Facility (IPIF) will further support the Philippine government in preparing “high quality, inclusive, climate-resilient, and low-carbon public infrastructure to boost economic growth and improve Filipinos’ access to jobs, markets, and public services such as education and health care.”

The additional $200-million loan for the IPIF is a follow-on of the initial $100-million loan approved by the lender in 2017 to help the government prepare flagship infrastructure projects such as railways, roads, bridges, and flood protection facilities. 

Moreover, the additional financing would also support the preparation of complex and critical climate-resilient road, bridge, transport, and flood risk management projects identified by the government as flagship projects. 

The ADB said the latest IPIF loan will help accelerate early project implementation through feasibility studies and detailed engineering design that embeds climate-resilient features to support the Philippines in achieving its climate commitments and national adaptation priorities.

“The Philippines has raised its public infrastructure spending in recent years to steer the economy toward a sustainable, high-growth path,” said ADB Senior Transport Specialist Daisuke Mizusawa. 

“With this additional financing, we aim to help the government scale up the scope of its investments, further improve the readiness and quality of public infrastructure projects, and strengthen public investment management systems,” said Mizusawa.

The lender said it will assist in building up the capacity of implementing agencies such as the Department of Transportation (DOTr) and the Department of Public Works and Highways (DPWH) to implement large and complex infrastructure projects. 

Apart from the loan, the Manila-based multilateral bank will extend a $1.5-million technical assistance grant to support the strengthening of regulations and policies and enhance investment planning for low-carbon and climate-resilient infrastructure, and the development of frameworks and methodologies to consistently identify and mitigate climate risks in infrastructure projects.

The ADB said previous support under its IPIF has helped in the preparation of more than $40 billion worth of ongoing and planned infrastructure investments, exceeding initial estimates. 

These investments were financed by ADB, other development partners, and the government, according to the lender.

The lender added that its support for infrastructure development in the Philippines has steadily grown since 2018, and now accounts for almost 60% of ADB’s total portfolio in the country. 

The ADB has so far committed financing of $8.4 billion for transport projects, including the Malolos Clark Railway Project and the South Commuter Railway Project, which are part of the North–South Commuter Railway system connecting Metro Manila to nearby northern and southern provinces. 

These projects, along with other major bridge and public transport projects, are collectively expected to reduce greenhouse gas emissions by 497,866 tons per year, the lender said.

The bank said it has also supported the preparation of about $1.3 billion worth of projects that aim to reduce flood risks and enable climate change adaptation in major and principal river basins, including the Integrated Flood Resilience and Adaptation Project (Phase 1).—AOL, GMA Integrated News