ADB sets aside $9.4-B to lend to Philippines from 2021 to 2023

MANILA, Philippines — Manila-based Asian Development Bank is "scaling up" its support  for the Philippines, earmarking over P9 billion for lending to the government in the next 3 years to assist in repairing the economic damage left by the coronavirus pandemic.

In a new operations business plan for its host country released Wednesday, ADB outlined $9.4 billion in lending from 2021 to 2023, with infrastructure and health projects cornerning a big chunk of allocated funds.

Broken down, the multilateral lender set aside $3.6 billion in loans next year, including $1.75 billion for the South Commuter Railway Project, a flagship infrastructure program. The amount would slightly decline to $2.92 billion for 2022, including $1 billion funding for the Malolos-Clark Railway project.

In 2023, the ADB slightly hiked the lending program to $2.95 billion to cover the other funding requirements for the South Commuter Railway Project and release the initial financing for the construction of Metro Rail Transit Line 4.

Overall, over 52% of the funds will finance transport projects such as railways, roads, and bridges. The next biggest chunk of 12% would help enforcethe Universal Health Care Act, a priority measure mandating healthcare for all Filipinos. The balance will go to a mix of projects composed of urban development in Palawan, strengthening public cash aid systems, increasing farm output, and developing capital markets.

“We have designed our new Country Operations Business Plan to help the Philippines overcome the socioeconomic impact of the pandemic," ADB Vice-President Ahmed Saeed said in a statement.

"We are focusing on infrastructure projects that have large employment multipliers and support long-term economic growth through improved connectivity,” he added.

This year, ADB has lent $4.2 billion to the Philippines to bankroll both infrastructure projects and coronavirus pandemic programs.

“Our Country Operations Business Plan is taking an integrated approach to business and employment recovery over the next three years through a combination of programs and projects supporting structural reforms to the business sector, facilitating youth employment, and upgrading skills development in the workplace,” said Kelly Bird, the lender's director in the Philippines.