Manila-based Asian Development Bank (ADB) has granted the Philippines a new $200-million loan to finance what it called “high quality, inclusive, climate-resilient, and low-carbon” public infrastructure projects for a more sustainable growth, jobs’ creation, and to improve markets, education and health care.
ADB in a statement Friday, Dec. 8, said the financing will accelerate the early project implementation of the “complex and critical” flagship projects of the government through feasibility studies and detailed engineering design for climate-resilient road, bridge, transport, and flood risk management projects. The financing is covered by ADB’s Infrastructure Preparation and Innovation Facility (IPIF).
“The Philippines has raised its public infrastructure spending in recent years to steer the economy toward a sustainable, high-growth path,” said ADB Senior Transport Specialist Daisuke Mizusawa.
“With this additional financing, we aim to help the government scale up the scope of its investments, further improve the readiness and quality of public infrastructure projects, and strengthen public investment management systems,” he added.
The loan will also support the Philippines in achieving its climate commitments and national adaptation priorities, said ADB.
Under the facility, ADB will help the government improve the capacity of the Department of Transportation and the Department of Public Works and Highways as implementing agencies for the large and complex infrastructure projects.
“A $1.5 million technical assistance grant will support the strengthening of regulations and policies and enhance investment planning for low-carbon and climate-resilient infrastructure, and the development of frameworks and methodologies to consistently identify and mitigate climate risks in infrastructure projects,” said ADB.
Meanwhile, the IPIF has previously helped in the preparation of more than $40 billion worth of ongoing and planned infrastructure investments, exceeding initial estimates. These investments were financed by ADB, other development partners, and the government.
ADB said its support for the Philippine infrastructure development has been expanding since 2018 and now accounts for almost 60 percent of its total loan portfolio in the country.
Financed transport-related projects have reached a total $8.4 billion including the Malolos Clark Railway Project and the South Commuter Railway Project, part of the North–South Commuter Railway system connecting Metro Manila to nearby northern and southern provinces. These projects, along with other major bridge and public transport projects, are collectively expected to reduce greenhouse gas emissions by 497,866 tons per year, said ADB.
The bank has also funded some $1.3 billion worth of projects to “reduce flood risks and enable climate change adaptation in major and principal river basins, including the Integrated Flood Resilience and Adaptation Project (Phase 1),” it added.
If you like this article, share it on social media by clicking any of the icons below.
Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.
The article was originally published in Manila Bulletin and written by Lee C. Chipongian.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year