The Asian Development Bank (ADB) has committed to "more than double" its assistance to the Philippines, from around 1.3 billion U.S. dollars to 2.5 billion dollars in the coming years, ADB President Takehiko Nakao said on Monday.
"Next year, we will have more programs, and we are now thinking of raising once again our lending to the Philippines, doubling from 1.3 billion U.S. dollars average in these three years to 2.5 billion U.S. dollars in coming years," Nakao said in a news conference following a loan document turnover ceremony at the Department of Finance (DOF).
Nakao said ADB's operations in the Philippines are growing significantly, with a focus on transport, flood control, livable cities, local economic development, and investing in people.
"Total commitments will increase to 7.4 billion U.S. dollars during the three-year period 2019 to 2021, or about 2.5 billion U.S. dollars annually, which is more than double ADB's annual assistance from 2011 to 2017," Nakao said, adding that the cooperation between the ADB and the Philippine government "is now closer and more coordinated."
On Monday, Nakao and Philippine Finance Secretary Carlos Dominguez met and discussed on cooperation in 2018, including four loans expected to be signed by the end of the year worth in total 1.38 billion and increasing ADB assistance going forward.
"ADB is committed to supporting the Philippine government as it pursues more inclusive growth across the archipelago. Boosting the government's effort to build up infrastructure and expand financial services in underserved areas of the country will help reduce income inequality in the country, which has persisted despite sustained strong economic growth in recent years," Nakao said.
ADB expects a growth rate of 6.4 percent this year and 6.7 percent in 2019. The country's inflation shows initial signs of decline, thanks to proactive measures by the government and prudent monetary policies.
Nakao commended the Philippine government's efforts to raise revenue and rationalize tax systems, which ADB is supporting through technical assistance.
The Manila-based bank also expects to sign upon Board of Directors approval later this year the Emergency Assistance for the Reconstruction and Recovery of Marawi, amounting to 400 million dollars in loans and 8 million dollars in grants.
The loan will finance projects under the Bangon Marawi Comprehensive Rehabilitation and Reconstruction Plan covering infrastructure, and the restoration of public services and livelihoods, the ADB said.
Marawi is a city in southern Philippines, ruined by months of fierce fighting between government and terrorists in 2017. The government is in the process of rebuilding Marawi.
