ADB OKs $400-M loan to support PH ease of doing business reforms

The Asian Development Bank (ADB) announced Wednesday it has approved a $400-million policy-based loan to support the Philippine government's reforms to improve ease of doing business.

The loan for the Business Environment Strengthening with Technology Program (BEST) Subprogram 1, the ADB said, would support private sector development reforms to streamline and improve transparency of regulatory requirements and processes for businesses. 

The program would also seek to facilitate investment in priority sectors with strong development impact and strengthen digital delivery of government services to businesses and investors. 

"The private sector is an important engine of growth and job creation. Their role in the country's overall economic development cannot be overstated," said Andrew Jeffries, ADB country director for the Philippines.

"We are committed to assisting the Philippines in finding innovative ways to create an enabling environment that would spur a more dynamic business sector—one that will help drive faster economic growth," said Jeffries.

The Manila-based multilateral lender cited the Philippines' 2024 ranking of 52nd out of 67 economies in the International Institute for Management Development's World Competitiveness Ranking, and the country's 36th out of 50 economies rank in the operational efficiency pillar of the World Bank's Business Ready framework. 

The rankings point to regulatory and bureaucratic frictions that hinder new businesses and slow productivity and innovation, particularly for micro, small, and medium-sized enterprises, the ADB said.

The lender said the Philippine government has prioritized addressing existing barriers in doing business to boost the country's competitiveness and drive increased investments and job creation. 

The loan program, the ADB said, seeks to establish better legal, regulatory, and institutional frameworks to facilitate starting and operating a business, including faster permit and licensing procedures and government approval of new ventures.

The program supports whole-of-government solutions to raise investments and support sustainable economic growth in the country, according to the ADB.

It aims to improve investor experience through stronger investment facilitation through clear, updated, and reliable information via online investors' guidebooks and a digital database of business regulations under the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority (ARTA).

The ADB said the program also focuses on facilitating investments in priority sectors, such as renewable energy and digital infrastructure, which it described as crucial for development "as greater investment in renewable energy generation and enhanced digital infrastructure both help reduce greenhouse gas emissions." — VDV, GMA Integrated News