Commits support to Duterte Gov’t ADB eyes higher lending to Phl this year

MANILA, Philippines - Manila-based Asian Development Bank (ADB) has committed support for development projects under the Duterte administration’s 10-point economic agenda.

The multilateral lending institution yesterday congratulated President Duterte and wished him success in his administration.

“The Philippines, a founding member of ADB, has hosted ADB headquarters since its establishment in 1966. We are grateful for its warm hospitality and close partnership,” said ADB president Takehiko Nakao.

“We are happy to elevate our support to the new administration to pursue its development objectives based on the 10-point economic agenda,” he added.

Nakao said the bank is targeting to provide $1 billion in sovereign loans to the Philippines this year and is “ready to increase assistance further based on discussion with the new administration.”

ADB provided its first loan to the Philippines in 1969 to support private enterprise development, followed by a loan to support agriculture and rural development in Mindanao. Since then, it has provided $15.9 billion in sovereign loans, 1.6 billion in non-sovereign operations such as guarantees to the private sector, and $92 million in technical assistance for various development projects.

Immediately after the occurrence of Typhoon Yolanda in 2013, the ADB provided $900 million for rehabilitation of affected areas.

ADB is currently supporting projects in the country for sustainable and climate-resilient infrastructure, good governance and finance, youth employment and education, gender, social protection (conditional cash transfers for poor households) and regional integration. ADB has been supporting the government’s public-private partnership initiatives, and is currently providing transaction advisory service to the 595-kilometer North-South railway project.

President Duterte’s economic team has presented a 10-point economic agenda that builds on the gains of the Aquino administration. The agenda was expanded and revised from an earlier announced eight-point economic plan.

The agenda includes the continuance and maintenance of current macroeconomic, fiscal, monetary and trade policies; institution of a progressive tax reform and a more effective tax collection; increasing the competitiveness of businesses and improving the ease of doing business; accelerating annual infrastructure spending; promoting rural development; ensuring security of land tenure to encourage investments; investing in human capital development; promoting science and technology; improving social protection, as well as strengthening the implementation of the Responsible Parenthood and Reproductive Health Law.