ADB eyes $4 billion loans to Philippines under new CPS

MANILA, Philippines — The Asian Development Bank (ADB) is looking at lending up to $4 billion annually to the Philippines under a new country partnership strategy (CPS) being crafted.

ADB country director for the Philippines Pavit Ramachandran told reporters the multilateral lender is looking at lending $3.5 billion to $4 billion annually for this year and next year.

He also said the annual lending expected for this year and in 2024 is being eyed as the benchmark in terms of lending for the new program.

“It is also consistent with what we have been doing in the last two to three years because these are large, complex infra projects but also some budget support mixed in on some strategic areas,” he said.

The ADB is currently preparing the CPS for the Philippines covering 2024 to 2029.

Ramachandran said the exact timeline for the completion of the CPS is still to be determined, but is not expected before the second quarter of next year as consultations and discussions still have to be conducted.

In terms of priority areas for cooperation under the new CPS, he said there will be a strong focus on climate change.

“We are building on the current CPS, but there are some areas where we will be taking it up a notch. I think climate change is one,” he said.

He said the new CPS will also be aligned with the country’s overall development blueprint or the Philippine Development Plan, the socioeconomic development agenda and the Medium Term Fiscal Framework.

“It’s very much about trying to support this transition to upper middle-income country, but ensuring strong, sustainable, resilient foundation so that, you know, one pillar will continue to be investing in people, investing in Filipinos in terms of health, education, social protection side,” Ramachandran said.

He also said the new CPS will have a climate-resilient infrastructure pillar.

Aside from climate change, he said the ADB will be focusing on increasing engagement with the private sector under the new CPS.

“We really are trying to ramp up our private sector engagement, both public-private partnerships, which are very much part of the government’s agenda as well in terms of the delivery of infrastructure program, but also dedicated private sector investments in clean energy, digital development, affordable housing,” he said.

For this year, he said among the projects being eyed for ADB approval is the Bataan-Cavite Interlink Bridge.

Also being considered for approval for this year are support for projects part of the government’s infrastructure flagship program, as well as the policy-based lending to support domestic resource mobilization and inclusive finance.