ADB increases lending program for the Philippines to $3.9 billion after approving a $400m vaccine loan last month

The Asian Development Bank (ADB) increased its lending program for the Philippines this year to $3.9 billion (₱188.9 billion) from the $3.5 billion after approving a $400-million loan to buy coronavirus vaccines last month.

In a briefing on Wednesday, ADB Country Director for the Philippines Kelly Bird spoke of the details of the lending program.

The lending program is currently composed of eight projects in infrastructure, social programs, and local governance with two projects valued at $1.93 billion, another three at $1.2 billion, and three more at $734 million, respectively.

The first of the two infrastructure projects is the $1.75-billion South Commuter Railway Project, a big-ticket infrastructure project aiming to connect Manila and Calamba, Laguna with a 54.6-kilometer railway system. Next, is the $180 million Metro Manila Bridges Project, which involves the construction of three new bridges crossing the Marikina River to ease traffic in Metro Manila. Both loans for these projects are expected to be approved later this year.

For local governance, the ADB is set to extend a $238 billion loan for the Davao Public Transport Modernization Project, a $400 million loan for the Local Governance Reform Program, and a $96 million loan to boost tourism in Palawan.

“(The loan for Palawan will not only be) focusing on capacity development for marine resource management but also (on) providing grants to tourism enterprises to improve the competitiveness and skills training. The project is designed to ensure environmentally sustainable tourism in Palawan,” he said. (via Business World)

For social programs, the bank aims to approve a $400-million loan for a project that facilitates the school-to-work transition for the youth. This will be the third and final subprogram for the project that ADB will finance after having lent $400 million in 2019 and $300 million in 2017. The ADB is also expected to lend $400 million to partially fund the Universal Health Care program.

“We also have several civil standby projects that are still in preparation stages,” Mr. Bird added.

Last year, the bank lent $4.24 billion to the Philippines, 56% of which financing the government’s pandemic response. The bank is looking to have an average $3-billion lending program for the Philippines each year until 2022.

SOURCE: Business World