ADB offers Philippines $3.8B in loans for infra, social projects
MANILA, Philippines – The government will be getting a boost from a traditional source of aid, to go along with huge offers from China and Japan to fund its ambitious Build, Build, Build infrastructure program.
The Department of Finance (DOF) said in a statement on Sunday, August 20, that the Asian Development Bank (ADB) has offered $3.8 billion in loans based on its latest Country Operations Business Plan (COBP) for the Philippines.
$1.8 billion or 47.4% of the total amount would be earmarked for infrastructure development, according to a report by the DOF's International Finance Group (IFG).
Another $1.5 billion or 39.5% would be set aside for education and skills development, access to finance, expanded social protection, and employment opportunities for the youth.
The remaining $500 million or 13.1% would be for programs focusing on good governance and finance.
The COBP will cover the years 2018 to 2020. Among the projects are the Central Spine Roll-On/Roll-Off (RORO) Project and the Mindanao River Basin Flood Control Project.
The IFG also said that the ADB has agreed to explore co-financing arrangements with the Japan International Cooperation Agency (JICA) for some of the Philippines' major infrastructure projects, such as the proposed Malolos-Clark Railway.
The ADB also committed to design a $300-million package of critical transportation infrastructure initiatives to ease Metro Manila traffic. This might be co-financed with other multilateral institutions such as the China-led Asian Infrastructure Investment Bank and France's Agence Française de Développement.
Besides the loan pipeline, the ADB has also offered $21.8 million in the form of non-lending programs, including support for project preparations and capacity building of various government agencies.
The Duterte administration has detailed plans to spend around P1.5 trillion on infrastructure projects until 2022.