Philippines gets $250-M ADB loan for vaccine purchases

MANILA, Philippines — The Asian Development Bank would lend $250 million to the Philippines to boost the national government’s vaccine procurement efforts.

In a statement on Monday, the Manila-based multilateral lender said the loan will fund the purchase of 40 million additional doses of vaccines that could be used for children and as booster shots for the adult population.

The ADB said the loan project will be co-financed by China-led Asian Infrastructure Investment Bank.

“ADB is supporting the government’s drive to provide vaccines to protect its citizens and save lives, especially with the emergence of new COVID-19 variants,” ADB Principal Social Sector Specialist for Southeast Asia Sakiko Tanaka said.

This is not the first time the multilateral lender will be assisting the country’s vaccine purchases. Back in March, when procurement efforts were flagging, the ADB stepped in and granted the Philippines a loan to purchase 85.6 million doses of vaccines. 

That loan package came to supply half of the country’s vaccine stockpile, with 81% of these purchases delivered as of December 2 based on ADB’s tracking.

As it is, the latest credit line from the ADB would add to the government’s ballooning pandemic debts. Data from the finance department showed total financial cost of COVID-19 related loans amounted to $ 28.91 billion or P1.47 trillion as of November.

The outstanding balance or the principal value of the loans is $22.58 billion or P1.15 trillion, while the projected amount of interest payments until maturity is $6.32 billion or P320.85 billion. These loans will mature between 2024 and 2060. 

“These supply contracts have helped the government expand its national COVID-19 vaccination program,” the ADB said.

As of December 12, the government has administered 92.91 million doses of vaccines nationwide. Data showed 774,321 vaccines have been jabbed as booster to the eligible population. 

The youngest eligible age to receive the vaccine in the country is 12 years old.