INFRASTRUCTURE and social programs will take up most of the $3.8 billion worth of loans provided by multilateral lender Asian Development Bank (ADB), the Finance department said.

In a statement, the Department of Finance’s (DoF) International Finance Group proposed $1.8 billion worth of ADB loans to infrastructure development, $1.5 billion for education and skills development, access to finance, expanded social protection and employment opportunities for the youth, and $500 million for good governance and finance programs.

These loans form part of the ADB’s Country Operations Business Plan (COBP) loan pipeline for the Philippines covering 2018 to 2020.

Some projects that will be funded from the loans are the Central Spine Roll-On/ Roll-Off (RORO) Project and the Mindanao River Basin Flood Control Project.

The ADB has also agreed to explore co-financing the P211.43-billion Philippine National Railways (PNR) Malolos-Clark Railway and the P134-billion PNR Commuter South Line project with the Japanese government’s aid and assistance body, the Japan International Cooperation Agency.

According to the DoF, the ADB has committed to draft a $300-million package “of critical transportation infrastructure initiatives to ease Metro Manila traffic.”

It also said that the ADB is exploring the possibility of co-financing this initiative with other multilateral institutions such as the Asian Infrastructure Investment Bank and the Agence Francaise de Developpement.

“On this aspect, the ADB agreed to help the Philippines enhance its capacity and readiness in handling and financing infrastructure projects, particularly in the construction of railways,” the DoF said.

On top of this, the COBP will also feature non-lending programs worth $21.8 million, such as support for project preparation and capacity building of various government agencies.

The International Finance Group also said that the bank has agreed to hold quarterly meetings, as requested by the government, “to ensure that the ADB’s country partnership strategy is aligned with the government’s priorities under the Duterte administration.”

“The bank has also responded positively to our request to increase the Philippines’ lending envelope and provide more grants and technical assistance,” the DoF said.

The government plans to embark on an P8.4-trillion medium-term infrastructure spending program, which is expected to grow the economy by 7-8% annually, starting next year until its term ends. — Elijah Joseph C. Tubayan

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