MANILA, Philippines — The Asian Development Bank (ADB) plans to lend some $3 billion (P154 billion) to the Philippines this year as the country continues its way toward economic recovery from the pandemic.
“ADB is preparing to fund about $3 billion worth of projects for the Philippine government,” ADB country director Kelly Bird said.
This year’s lending pipeline will be higher than the ADB’s approximately $2.3 billion financing in 2021.
Projects this year will focus on infrastructure, climate change, post-COVID recovery, and skills development.
Included in the pipeline is the South Commuter Railway Project or the Clark–Calamba Railway. The 148-kilometer urban rail transit line, which will run from New Clark City in Tarlac to Calamba in Laguna, will have 36 stations.
It will also complement the Malolos–Clark Railway Project which ADB approved in 2019.
The other projects include the Davao Public Transport Modernization Project, climate change action policy based loan, technical vocational education and training project, and a post-COVID business and employment recovery policy-based loan.
Last year, the bulk or 50.2 percent of ADB’s funding went to transport. The remaining were in public sector management, education, health, water and urban services, and agriculture and natural resources.
Meanwhile, Bird said the Philippine economy is seen growing six percent this year from the estimated 5.1 percent in 2021, noting a strong recovery in investment and government spending.
“GDP (gross domestic product) might recover to pre-pandemic levels around the fourth quarter of this year, but per capita growth won’t happen until 2023,” Bird said.
He added that among the growth drivers this year include the country’s accommodative fiscal and monetary policies, and sustained growth in public infrastructure investment with large employment multipliers.
The relaxation in mobility restrictions in Metro Manila and the national vaccination program to help restore consumer and business confidence will also provide a boost in recovery.
However, Bird noted that risks remain, especially on the spread of the Omicron variant that may lead to a return to stricter containment measures and disruptions to supply chains and services through workplace absenteeism.
“The surge of infections due to Omicron has affected confidence and may cause a drag, particularly on the retail sector,” he said.
ADB remains one of the country’s largest sources of official development assistance, with average annual lending of $1.9 billion over the last five years.