AN INFRASTRUCTURE assistance scheme providing technical expertise will be set up to aid in carrying out the government’s infrastructure programs, forming part of the Asian Development Bank’s (ADB) pledged $100-million loan to the government.
The announcement came from ADB President Takehiko Nakao yesterday during the Philippine Transport Forum at the ADB headquarters in Pasig city, where the Cabinet Secretaries presented their infrastructure agenda.
The facility will supply comprehensive assistance, from feasibility studies at the initial stage of project development, up to the bidding process.
“I am pleased to announce that ADB is preparing a TA (technical assistance) loan of $100 million, the Infrastructure Preparation and Innovation Facility, or IPIF. This TA loan will provide expertise and knowledge to key line agencies such as the Department of Public Works and Highways and the Department of Transportation,” said Mr. Nakao in a speech.
“It will help the development and preparation of projects, covering project feasibility studies, design, and procurement. This facility will fast-track priority projects and move them forward for delivery under this Administration,” he added.
“The Philippines needs to significantly catch up in infrastructure development to realize its potential and remain competitive,” Mr. Nakao said.
On top of this, the ADB will also provide a $5 million technical assistance grant for Strengthening Infrastructure Capacity and Innovation for Inclusive Growth.
“This TA will develop a project management and information system which will assist oversight agencies monitor the progress of projects, identify bottlenecks and deliver solutions,” said Mr. Nakao.
The multi-lateral lender said in February that it plans to lend the government $4.22 billion from 2018 to 2020 for transport, energy, education, social protection and rural development projects.
Of this amount, ADB aims to finance five projects worth $990 million planned for the southern island of Mindanao, and 16 projects and programs worth $3.23 billion over the next two years, according to a list released by the bank earlier.
This is also apart from the $9.3 million in technical assistance to the Philippines for the next three years starting 2018 committed earlier this year.
In May, the ADB Board of Directors approved $300 million to finance the “Facilitating Youth School-to-Work Transition Program,” for national and local governments to better prepare graduates for work.
The bank also took part on funding the P37.76 billion Metro Manila Bus Rapid Transit-EDSA line.
The government is looking to boost infrastructure spending to P8.4 trillion, or 7.4% of gross domestic product (GDP) by 2022, from the current 5.4% this year.
The Asian Development Outlook 2017 projects Philippine GDP growth of 6.4% and 6.6% this year and in 2018. — Elijah Joseph C. Tubayan
