ADB to extend $1 billion loan for Philippines healthcare program

MANILA, Philippines — The Asian Development Bank (ADB) is expected to extend some $1 billion (P51.3 billion) in loans to the Philippines to improve the country’s healthcare system.

The Manila-based multilateral lender said sub-program 2 of the Build Universal Health Care (UHC) Program has an indicative loan amount of $400 million (P20.5 billion).

This is on top of the $600 million (P30.8 billion) policy-based loan for sub-program 1, which the ADB approved in November  last year.

The program will be implemented by the Department of Health and the Philippine Health Insurance Corp.

The UHC Law aims to ensure that all Filipinos are guaranteed equitable access to quality and affordable health care goods and services, and protected against financial risk.

ADB’s loan to the Philippines will support the government’s initiatives to improve the financing and delivery of health services and implement measures to monitor the performance of health service providers.

Both sub-programs cover areas on sustainable financing and strategic purchasing for UHC, integrated delivery of quality health services, and information management and performance accountability.

Apart from the loan, the ADB will administer a $2-million (P102.6 million) technical assistance (TA) grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) to support the implementation of health policy reforms.

During the TA launch, Japanese Ambassador Kazuhiko Koshikawa said the Philippines is the first country to receive the newly introduced UHC window project under the JFPR.

The TA aims to support the pilot implementation of UHC policy reforms at select local government units and provide policy recommendations for subsequent UHC-related programs.

Since 2020, the pandemic has exposed the severe weakness in health systems globally and exacerbated gaps in the quality and service of healthcare.

ADB’s loan financing to the Philippines aims to boost the government’s ability to achieve its UHC goals and provide timely and equitable health care services, especially for the poor and marginalized.