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LOANS available to the Philippines from the Asian Development Bank (ADB) are expected to reach $ 9.4 billion between 2021 and 2023 to increase its funding for infrastructure construction and Covid-19 recovery programs.
In a briefing on Wednesday, ADB’s country director for the Philippines, Kelly Bird, announced that the agency unveiled its country operations business plan (COBP) for 2021 to 2023. The COBP is made up of projects that The multilateral institution is spending in the Philippines for the next three years, in its recovery from the Covid-19 pandemic.
Bird said that the COBP has two phases, namely, reconstruction and recovery, where the first focuses on repairing the damages caused by the health crisis in the business sector, labor market and social services, while the second is focuses on financing infrastructure projects that have a growth multiplier, especially employment.
According to the ADB, almost half will be implemented next year, largely for the construction of section 1 of the southern commuter rail project. The first part of the project that will connect Calamba, Laguna, with Blumentritt in Manila will cost $ 4.3 billion in total. in total, and $ 1.75 billion will be spent next year.
The ADB will also lend government funds to implement and localize universal health care, as well as to facilitate the transition from school to work and youth reforms at the local government level.
The ADB projects loans for 2021 to reach $ 3.56 billion, but has a reserve of $ 800 million for numerous infrastructures, including Phase 1 of the Integrated Flood Risk Management Sector Project. the benefit of Filipino workers.
By 2022, the largest projects the government will deliver through ADB loans are Tranche 2 of the Malolos-Clark Rail Project and Tranche 1 of the Bataan-Cavite Bridge Project, both costing $ 1 billion.
In 2023, the ADB intends to provide financing for the second section of the Southern Cercanías Railway Project in the amount of $ 1.25 billion. By that year, the Manila-based multilateral is also looking to begin initial construction of the $ 1 billion Laguna Lakeshore Roads Project.
According to Bird, the ADB will support the Philippines’ social and infrastructure projects to increase its chances of recovering from the economic impact of the Covid-19 pandemic.
The ADB has lowered its economic projections for the Philippines, as it now expects GDP to decline 8.5 percent this year. On the other hand, he forecasts that the country will recover next year by a sum of 6.5 percent if the government continues with its gradual reopening of commercial activities.
However, the ADB warned that risks remain in 2021, especially with the continued rise of the virus on a global scale, as well as with the way the Philippines will implement its vaccination program.
