ADB extends $105M in loans, grants to PHL infra projects

The Asian Development Bank (ADB) has extended a total of $105 million in loans and grants to the help the Philippine government speed up major infrastructure projects, the Department of Finance (DOF) said Tuesday.

Included in the amount is a $5-million aid.

The Department of Transportation (DOTr) proposed that preparations for the Tagum-Davao-Digos segment of the Mindanao Rail Project be covered by the grant, and the National Economic and Development Authority (NEDA) seeks to tap into it for the recently-approved Project Facilitation, Monitoring and Innovation (PFMI) Task Force.

For the $100 million loan, the Philippine government is required to provide a counterpart fund of $60 million to set up an Infrastructure Preparation and Innovation Facility (IPIF) and support initiatives of the DOTr and the Department of Public Works and Highways (DPWH) in conducting pre-investment activities.

The IPIF will support feasibility studies, detailed engineering design, bid document preparations, due diligence review, and other activities that will improve the preparedness of the DOTr and DPWH in implementing infrastructure projects.
 
According to the DOF, the NEDA Board chaired by President Duterte approved the IPIF on Sept. 12, 2017 based on a recommendation by the Investment Coordination Committee-Cabinet Committee.

Apart from the $105 million, the Philippines can also tap into $3.68 billion in loans and $23.1 million in the form of non-lending programs from ADB to help fund accelerated spending programs on infrastructure and social services from 2018 to 2020. — Ted Cordero/VDS, GMA News