ADB to extend $1.72-B to PH for dev’t projects

MANILA, Philippines – The Asian Development Bank (ADB) will extend some $1.72 billion worth of loans to the Philippines from 2013 to 2015, according to its latest Country Operations Business Plan (COBP) for the period.

The ADB said this will cover only the loan requirements for a pipeline consisting of 7 firm projects to be financed in the next 3 years. The government will provide counterpart funding for the projects that will be sourced internally or through other means.

There are 5 firm projects slated to be financed in 2013 worth $1.338 billion; 4 projects for 2014 worth $1.225 billion; and 7 projects for 2015 worth $1.283 billion.

“The Philippines is classified as an ordinary capital resources-only developing member country. For 2013–2015, an indicative lending program of $1.72 billion is proposed. The processing of pipeline projects will be subject to rigorous quality-at-entry checks and financing availability,” the ADB said.

“The indicative lending pipeline includes significant cofinancing, including from the Association of Southeast Asian Nations Infrastructure Fund. A proposed nonlending program of $21.10 million, including external sources, is subject to the mobilization of grant cofinancing,” it added.

For 2013, the ADB will finance $600 million of the $798 million worth of projects which include:

• Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 1 (formerly Local Government Finance and Budget Reform Program Phase 2, Subprogram 1) worth $398.59 million and loan requirement of $200 million; and
• Convergent Social Protection and Community-Driven Development Project (formerly Second Social Protection Support Project) worth $400 million, the entire amount will be covered by the ADB loan.

For 2014, the ADB will finance the $650 million loan for the $770 million worth of projects which include:

• Education Improvement Sector Development Program worth $320 million with a loan amount of $300 million; and
• Increasing Competitiveness for Inclusive Growth Subprogram 2 worth $450 million with a loan amount of $350 million.

For 2015, the ADB will finance the $470 million loan for the $773.59 million worth of projects which include:

• Second Road Improvement and Institutional Development Project worth $305 million with a loan worth $200 million;
• Disaster Risk Financing Project worth $70 million, the entire amount will be a loan from the ADB; and
• Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2 (formerly Local Government Finance and Budget Reform Program Phase 2, Subprogram 2) worth $398.59 million with an ADB loan worth $200 million.

Grants

Apart from loans, the ADB is also prepared to extend grants to the Philippines in the order of $21.1 million between 2013 and 2015. These grants will either be obtained from ADB sources or other sources.

For 2013, the Philippnes is expected to receive some $9.1 million worth of grants through the ADB. This will cover the following projects:

• Second Road Improvement and Institutional Development Project (formerly Second Road Sector Institutional Development and Investment Program), which will receive $1 million from ADB;
• Local Government Finance and Fiscal Decentralization Reform Program, Subprogram 2 (formerly Local Government Finance and Budget Reform Program, Phase 2), which will receive $1.3 million from ADB;
• Water Sector Governance Strengthening, which will receive $0.5 million from ADB;
• Strengthening Capacity for Scaled-Up Implementation of Community-Driven Development (formerly Capacity Development for Participatory Local Government Planning and Public Expenditure Management), which will receive $1.5 million from other sources;
• Local Government Water and Sanitation Sector Project, which will get $1.2 million from other sources;
• Climate Resilience and Green Growth in Critical Watersheds (formerly Capacity Building for Low Carbon Climate Resilience Options), worth $2 million from other sources;
• Capacity Building for Medium-Term Fiscal Management, $0.5 million from ADB; and
• Review of Philippine Power Sector Reform, $1 million from other sources.

For 2014, the country will receive a total of $4.7 million worth of grants from the Manila-based lender. This will cover the following projects:

• Natural Resources and River Basin Management, which will receive $1 million from ADB;
• Third Road Improvement and Institutional Development Project, $0.8 million from ADB;
• Local Government Revenue Generation and Land Administration Information Systems Investment Project, $0.8 million from ADB;
• Rationalizing Local Government Non Tax Revenues, $1.5 million from other sources; and
• Improving Higher Education in the Philippines, $0.6 million from ADB.

In 2015, the Philippines will receive a total of $7.3 million worth of grants from ADB. This amount will cover the following projects:

• Davao Public Transport Modernization Project, which will get a grant of $1.3 million from ADB;
• Strengthening Higher Education Sector Development Program, $1.3 million from ADB;
• Support to Policy Formulation (follow-up of TA on Results-Oriented Strategic Planning and Development for Inclusive Growth 7806), $0.5 million from ADB;
• Capacity Development for Local Government Units in Natural Resources and River Basin Management, $3 million from other sources; and
• Capacity Development for Land Management and Local Government Revenue Generation, $1.2 million from other sources.

– Rappler.com