Countries and Regions

	Table of Contents
p. 20 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Subregional Economic Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Philippines

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IX. Local Cost Financing

83. In 1999 ADB approved only one TA-loan amounting to $3 million. There was no local cost financing involved. The program for 2000 and the forward program does, however contain local cost financing on several projects, particularly those in the social sectors.

84. Local cost financing can be justified both on country and project considerations for the programmed projects in the Philippines. In view of the shift in emphasis in the program towards poverty alleviation, more projects are being taken up in the areas of agriculture, natural resources, human resources development, and urban development. These projects include larger shares of local currency costs than physical infrastructure projects. The Philippine Government continues to face pressure on the budget, arising from currency depreciation and reduced revenues resulting from slower growth. Local currency financing can therefore be justified in support of delivery of basic social services to effectively help reduce poverty.

Back VIII. Economic and Sector Work Program	Country Assistance Plans - Philippines