The Asian Development Bank (ADB) has approved a $200-million loan for the Philippines to fund sustainable and climate-resilient public infrastructure projects. The goal of these projects is to promote inclusive growth, create jobs, and improve markets, education, and healthcare in the country.
According to ADB, the financing will be used to accelerate the early implementation of critical government projects through feasibility studies and detailed engineering designs for climate-resilient road, bridge, transport, and flood risk management projects. The funding is covered by ADB’s Infrastructure Preparation and Innovation Facility (IPIF).
Senior Transport Specialist Daisuke Mizusawa stated, “The Philippines has raised its public infrastructure spending in recent years to steer the economy toward a sustainable, high-growth path. 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.”
In addition to supporting the Philippines in achieving its climate commitments and national adaptation priorities, the loan will also help improve the capacity of the Department of Transportation and the Department of Public Works and Highways as implementing agencies for large and complex infrastructure projects.
The ADB has also granted a $1.5 million technical assistance grant to support the strengthening of regulations and policies, enhance investment planning for low-carbon and climate-resilient infrastructure, and develop frameworks and methodologies to consistently identify and mitigate climate risks in infrastructure projects.
The IPIF has previously assisted in the preparation of over $40 billion worth of ongoing and planned infrastructure investments, exceeding initial estimates. ADB’s support for Philippine infrastructure development has been expanding since 2018 and now accounts for almost 60 percent of its total loan portfolio in the country.
The bank has also financed transport-related projects worth a total of $8.4 billion, including the Malolos Clark Railway Project and the South Commuter Railway Project. 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.
Additionally, ADB has funded approximately $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).
Overall, the loan from ADB is expected to have a significant impact on infrastructure development and climate resilience in the Philippines.