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ADB OKs $400-M loan for Philippine procurement of COVID-19 vaccines


The Asian Development Bank on Friday announced its approval of a $400-million loan to help the Philippines purchase vaccines against the coronavirus disease 2019 (COVID-19).

In a statement, the Manila-based multilateral lender said the Philippines became the first recipient of financing support under its Asia Pacific Vaccine Access Facility (APVAX).

“ADB’s support will boost the Philippine government’s urgent efforts to secure and deploy COVID-19 vaccines for all Filipinos, especially those who are vulnerable, such as frontline workers, the elderly, and poor and marginalized populations, as well as those at increased risk of severe illness,” said ADB President Masatsugu Asakawa.

“COVID-19 vaccines are critical to accelerating the recovery of the Philippine economy, rebuilding livelihoods, and restoring quality jobs,” Asakawa added.

At a virtual press briefing, ADB’s senior social sector specialist for Southeast Asia Sakiko Tanaka said the loan agreement for the $400-million financing will be signed and disbursed within the month.

According to the ADB, the Second Health System Enhancement to Address and Limit COVID-19 under the APVAX (HEAL 2) project will assist the Philippines’ Department of Health (DOH) “in procuring and ensuring delivery to the country of vaccines certified by the COVID-19 Vaccines Global Access Facility (COVAX) and bilateral vaccine suppliers that meet APVAX eligibility criteria.”

Also, it noted that the project will be supported by a $300-million in co-financing from the Asian Infrastructure Investment Bank (AIIB).

“The ADB and AIIB loans will together fund the procurement of up to 110 million doses of COVID-19 vaccines for as many as 50 million Filipinos,” it said.

Tanaka said the HEAL 2 project is worth $700 million, $400 million of which is the recently approved loan from the ADB and $300 million from the AIIB, which is yet to be approved. It will be used for the entire vaccine procurement contract, which includes freight or logistics cost as well as insurance.

ADB said the HEAL 2 builds on and complements ADB’s Health System Enhancement to Address and Limit COVID-19 (HEAL) project, which was approved in August 2020.

In January 2021, the multilateral lender approved the reallocation of $25 million under the HEAL loan to fund the Philippine government’s advance payments to vaccine suppliers to secure the delivery of vaccines this year.

In Southeast Asia, the Philippines has one of the highest numbers of COVID-19 infections with more than 600,000 confirmed cases as of March 11.

APVAX is ADB’s $9-billion vaccine initiative offering rapid and equitable support to its developing members as they procure and deliver effective and safe COVID-19 vaccines.

Vaccines eligible for financing under the HEAL 2 loan must meet at least one of three APVAX criteria, namely: they have been selected for procurement through COVAX, prequalified by the World Health Organization, or their manufacture is authorized by a Stringent Regulatory Authority (SRA) in the country of production.

Any vaccine supply contract supported by ADB will follow ADB’s procurement rules and guidelines, including its anticorruption and integrity policy, the lender said.

Under the HEAL 2 loan agreement, ADB will pay vaccine suppliers directly, it said.

On the other hand, the ADB is providing technical advisory assistance to the government on vaccine procurement and its national vaccine road map through a development partner coordination working group set up by the Department of Finance.

Likewise, it is delivering technical support to help the government implement and monitor its vaccine prioritization plan, medical waste management program, and vaccine information management system.

Moreover, the ADB is helping the Philippines expand the coverage of other much-needed routine vaccinations, such as those for the elderly and people with disabilities.

In addition to HEAL and HEAL 2, ADB has supported the Philippines’ comprehensive COVID-19 response through the following:

  • a $3 million grant in March 2020 to procure emergency medical supplies and establish a COVID-19 testing laboratory in San Fernando, Pampanga;
  • a $5 million grant in March 2020 to support emergency food supplies to more than 162,000 vulnerable households in Metro Manila and nearby provinces in April to May 2020;
  • a $1.5 billion loan in April 2020, which contributed to the government’s wage subsidy and social protection programs;
  • a $200 million loan in April 2020 to help the government finance emergency cash transfers to poor households; and
  • a $2 million grant to assist distance education during the pandemic by providing teachers’ training and learning tools to secondary school students from disadvantaged households enrolled in so-called “last mile schools” in far-flung areas.

The Philippines has so far secured $900 million in loans (approximately P43.65 billion)—$400 million from the ADB and $500 million from the World Bank—to help fund its purchase of COVID-19 vaccines.

The country has started its vaccination of frontline health workers — the number one priority group—on March 1 using Sinovac doses donated by China.

According to Malacañang on Thursday, the country has vaccinated 114,615 individuals against COVID-19 so far.

The total number of vaccine doses deployed, on the other hand, stands at 796,950 consisting of 440,450 doses of Sinovac and 356,500 doses of AstraZeneca vaccines that arrived as part of the COVAX Facility.—LBG/AOL, GMA News

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