The Philippines becomes the third largest recipient of loan funding from the Asian Development Bank (ADB), as the multinational donor aims to support the government in its massive Build, Build, Build (BBB) program to address issues brought by rapid urbanization.
The ADB sovereign lending for the Philippines is expected to reach USD 9.1 billion between 2020 and 2022. As stated under the Philippines Country Operations Business Plan (COPB) 2020-2022, the ADB will invest 59.5% of its 3-year sovereign lending program in transportation projects, such as railways, bridges, road networks, and elevated pedestrian walkways. The government’s flagship 51.2 kilometer Malolos-Clark Railway Project will get USD 2.75 billion, ADB’s single largest Infrastructure project financing ever, with contracts to be awarded by end of 2019 and construction to be started in the second quarter of 2020.
Aside from the transport sector, the ADB will also hike up its funding for the agriculture and natural resources, social assistance and public sector management, and sustainable water and urban development.
In addition to the Malolos-Clark Railway project, the top projects which will receive ADB’s funding for the next three years include:
- USD 500 million for the Integrated Flood Risk Management Sector Project, to improve flood risk management in six river basins across the country.
- USD 500 million for the Expanded Social Assistance Project, an extended assistance to the government’s Conditional Cash Transfer Program (CCT).
- USD 300 million support for the government’s Universal Health Care (UHC) project for subsidized health programs and reform; and
- USD 300 million support for Agrifood System Competitiveness Program to improve irrigation, rural market Infrastructure, and capacity building.
(Sources: Inquirer; Business Mirror; Modern Diplomacy)