Philippines, ADB sign $7.1-B sovereign lending program

 

The Philippines and the Asian Development Bank (ADB) recently signed a $7.1-billion sovereign lending program from 2019 to 2021.

The Manila-based ADB signed memorandum of understanding with the National Economic and Development Authority (NEDA) and the Department of Finance on June 29, the bank said Wednesday.

With the lending program in place, the ADB reaffirms its commitment to support the government in raising the country’s growth trajectory and reducing poverty and income inequalities, it said in a statement.

The MoU signing ceremony was witnessed by NEDA Secretary Ernesto Pernia. Also present were officials from implementing agencies, such as the Department of Public Works and Highways, Department of Transportation, and Department of Interior and Local Government.

“I am very happy about this program,” Pernia said. “ADB has been very cooperative and helpful in our objectives to sustain our economic growth and achieve inclusive development. This will help bring us closer to our longer-term vision of a prosperous, middle-income country where no one is poor by 2040.”

The government’s “Build, Build, Build” program will be supported by the proposed lending program, with two-thirds of the ADB pipeline, or about $4.5 billion, allocated for projects that connect regions and communities and manage urbanization, such as railways, bridges, roads, and flood management, the multilateral lender said.

The remaining one-third of the pipeline will focus on policy support and social assistance in the areas of inclusive finance, capital market development, local government development, and youth employment, it said.

The agreement covers an indicative three-year rolling program that is revisited annually.

ADB’s Country Operations Business Plan 2019–2021 will focus on the strategic priorities of accelerating infrastructure and long-term investments, promoting local economic development, and investing in people to support the government’s objective of lowering poverty to 14 percent of the population by 2022, from the current 21.6 percent.

“ADB is committed to working closely and collaboratively with the government of the Philippines to ensure that we deliver on our pipeline of projects,” ADB Country Director for the Philippines Kelly Bird said. —Ted Cordero/VDS, GMA News