Philippines, ADB sign lending pipeline for 2019–2021

MANILA, Philippines — The Philippine government and the Asian Development Bank have signed a memorandum of understanding covering an indicative $7.1 billion sovereign lending program to the Philippines from 2019 to 2021.

According to the Manila-based multilateral lender, the planned lending program will support the Duterte administration’s ambitious infrastructure drive. The agreement covers an indicative three-year rolling program that is revisited annually.

Two-thirds of the ADB pipeline, or about $4.5 billion, has been allocated for railways, bridges, roads and flood management projects to connect regions.

The remaining one-third will focus on policy support and social assistance in areas of inclusive finance, capital market development, local government development and youth employment.

“ADB is committed to working closely and collaboratively with the Government of the Philippines to ensure that we deliver on our pipeline of projects,” said ADB Country Director for the Philippines Kelly Bird after the June 29 signing ceremony.

On the sidelines of the 51st ADB annual meeting in Manila last May, Socioeconomic Planning Secretary Ernesto Pernia urged the Bank to invest more in the country’s infrastructure and population management, saying the lender did not provide much help in those aspects.

Data from the ADB show the Bank’s active lending portfolio for the Philippines totals $2.3 billion. Of that amount, 64 percent went to education while public sector management and rural development account for 11 percent and 10 percent, respectively.

Meanwhile, the remainder of loans went to water, transport and energy projects.

“I am very happy about this program,” Pernia said of the proposed lending program. “ADB has been very cooperative and helpful in our objectives to sustain our economic growth and achieve inclusive development.”