ADB APPROVES $30-MIILION LOAN TO SUPPORT PPP PROJECTS

The Asian Development Bank (ADB) has approved a $30 million loan to support public-private partnership (PPP) projects in the Philippines.

According to the ADB on Dec. 13, the loan would be used to replenish the Project Development and Monitoring Facility (PDMF) managed by the government’s Public–Private Partnership Center (PPPC).

The PDMF is a revolving fund for the preparation offered to implementing agencies, procurement advisory, support services in preparation, structuring, development, probity management, and all necessary work to get the project developed and move on to implementation work.

The loan will also be used to enhance the capacity of implementing agencies and local government units (LGUs) to develop and manage projects, the ADB said.

Specifically, it will be used to support a total of 35 national and local PPP projects from 2025 to 2029, with all projects undergoing climate risk screening and management to ensure alignment with the Philippines’ nationally determined contribution.

These projects will cover railways, roads, and transport network improvements, as well as essential community facilities, contributing to the improvement of living standards for Filipinos.

“The Philippines is considered one of the leaders in the Asia and the Pacific region in the use of PPPs as a modality for addressing infrastructure gaps and pursuing sustainable growth and development,” said ADB Philippines Country Director Pavit Ramachandran.

GOVT SEEKING OTHER FUNDING SOURCES OUTSIDE OF ODA

The government is exploring various formats for its offshore funding needs outside of official development assistance (ODA).

The Development Budget Coordination Committee (DBCC) said on Dec. 12 that these include Eurobonds; Environmental, Social and Governance (ESG)-linked notes; and Sukuk or Islamic bonds.

“The NG capitalizes on the Philippines’ sovereign creditworthiness to access affordable credit from offshore markets as a supplement to regular domestic funding operations,” the DBCC said.

“As the country becomes less reliant on ODA loans upon graduating to upper middle-income status, the NG aims to maintain its strong track record of reliable access to foreign currency-denominated market financing,” it added.

ODAs are loans or grants for social and economic development.

ADB INFLATION OUTLOOK, MAINTAINS GDP FORECAST

The Asian Development Bank (ADB) has reduced the inflation outlook for the Philippines this year and maintained its gross domestic product (GDP) growth forecast for 2024 and 2025.

According to its In its Asian Development Outlook (ADO) December 2024 report released on Dec. 11, ADB revised to 3.3%its inflation rate forecast for the Philippines this year, down from 3.6% in the ADO issued last September.

The report attributed the revision to the government’s move to reduce tariffs on imported rice, helping control food prices.

“Inflation is expected to remain within the central bank’s 2% to 4% percent target, providing scope for further monetary policy easing. Policy rates were cut by a total of 50 basis points in August and October 2024,” the ADO report stated.

Meanwhile, the ADB maintained its GDP projection for the domestic economy for this and next year at 6 and 6.2 percent, respectively.

PH TO RECEIVE 10.7 MILLION EUROS IN CLIMATE FINANCING

The Philippines will receive 10.7 million euros (about P655 million) from the European Union (EU) to support climate mitigation and adaptation initiatives in the country.

The new funding is part of the Climate Fund Managers’ (CFM) Climate Investor Two (CI2) Fund, a $1-billion blended finance facility focusing on water, waste, and ocean infrastructure in emerging economies.

“Communities in the Philippines are amongst the most impacted by global warming. Only with public sector commitments like the EU’s can we unlock private investment at a sufficient scale to drive meaningful change,” CFM investment director Jeb Victorino said in a statement on Dec. 10.

The funding would mobilize private sector investment in critical sectors, such as the circular economy and green energy transition projects in the country.

A portion of the new funding, announced by the EU on Dec. 6, will support the development of the bioenergy facility in San Manuel, Isabela.

The CFM is co-developing the facility with BioAsia Energy Holdings, a joint venture of Anvirya Ventures Pte. Ltd. and La Suerte Rice Mill Corp. (LSRM), one of the largest paddy milling operators in Isabela province.

PH TOTAL EXTERNAL TRADE UP 4.9% IN OCTOBER

The total external trade in goods of the Philippines went up by 4.9% to $18.13 billion in October this year from $17.28 billion last year.

According to the Philippine Statistics Authority (PSA), of the total external trade in October 2024, 66% were imported goods, while 34% were exported goods.

Total export sales reached $6.16 billion, lower by 5.5% than the $6.52 billion sales in the same month last year.

“The commodity group with the highest annual decrement in the value of exports in October 2024 was electronic products with $868.86 million. This was followed by cathodes and sections of cathodes, of refined copper with an annual decrease of $24.33 million, and other mineral products with an annual decline of $20.41 million,” the PSA said.

By commodity group, electronic products, however, continued to be the country’s top exports in October 2024 with total earnings of $2.87 billion or 46.5% of the country’s total exports during the period.

GOVT OPTIMISTIC ON GROWTH PROSPECTS AFTER SIGNING OF NEW LAWS

Government is optimistic on the country’s economic prospects following the enactment of two laws which aim to boost tourism and strengthening food security.

Finance Secretary Ralph Recto said on Dec. 9 that he is optimistic about the country’s economic growth prospects in 2025 following President Ferdinand R. Marcos Jr.’s signing into law of Republic Act (RA) 12079 or the Value-Added Tax (VAT) Refund Mechanism for Non-Resident Tourists Act and RA 12078 or the Amendments to the Agricultural Tariffication Act.

Recto said RA 12078 enhances the capabilities of the government to protect Filipino consumers by extending market interventions to stabilize rice prices during periods of volatility and to prevent manipulative pricing and hoarding.

“The refinements to the Rice Tariffication Law are essential for the effective management of the Filipino household’s fundamental staple,” Recto said.

(PHOTO FROM PNA)