The Asian Development Bank’s (ADB) sovereign lending to the Philippines is expected to reach $9.4 billion (about P470 billion) between 2021 and 2023, with at least two-thirds going into infrastructure, health and employment recovery to help the government revitalize the economy amid the coronavirus disease 2019 (Covid-19) pandemic.
The Philippines’ Country Operations Business Plan 2021–2023 will support government programs and policies designed to repair damage to the business sector and labor market, accelerate economic recovery, and expand access to public health services.
“We have designed our new Country Operations Business Plan to help the Philippines overcome the socioeconomic impact of the pandemic. We are focusing on infrastructure projects that have large employment multipliers and support long-term economic growth through improved connectivity,” ADB Vice-President Ahmed Saeed said in a statement on Wednesday.
ADB Country Director for the Philippines Kelly Bird said: “Our Country Operations Business Plan is taking an integrated approach to business and employment recovery over the next three years through a combination of programs and projects supporting structural reforms to the business sector, facilitating youth employment, and upgrading skills development in the workplace.”
More than 52 percent of the sovereign lending will support transportation projects, such as railways, roads and bridges.
About 12 percent of ADB’s financing will help the government expand the public health system through the implementation of the Universal Health Care Act.
The rest of ADB’s lending will support environmentally sustainable urban development projects in Palawan province, which is located in the Philippines’ southwest; expand social protection; and boost agriculture competitiveness, public sector management, and capital market development.
Nearly half of ADB’s lending program in 2021, or $1.75 billion, will fund the first tranche of the South Commuter Railway Project, which is part of the North–South Commuter Railway (NSCR) system, which is the biggest infrastructure project under the Philippine government’s “Build, Build, Build” program.
Once completed, the 53-kilometer South Commuter Railway will connect Metro Manila with areas south of the capital, such as Calamba in Laguna province.
ADB has already provided financing for the Malolos-Clark Railway Project, which will construct part of the northern segment of the NSCR system.
Five civil works contracts worth $2.5 billion were awarded this year.
In 2021, ADB is expected to provide a health sector loan worth $500 million to help the Philippine government provide comprehensive and affordable health care services for Filipinos under a Universal Health Care coverage program.
To help the government create more jobs and improve workers’ job skills next year, ADB is preparing a policy-based Facilitating Youth School-to-Work Transition Program, as well as a technical and vocational education and training project for skills development.
ADB will also work with the government on a business and employment recovery program loan in 2022.
CURRENTPH
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