Regions and Countries

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p. 8 of 9 BACK | NEXT Executive Summary Map I. Introduction II. The ADB-Philippines Partnership Experience III. The Development Context IV. ADB’s Strategy and Assistance Program V. Risks and Assumptions VI. Resourcing the Strategy and Program Appendixes

Country Strategy and Program Update 2005-2007: Philippines

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VI. Resourcing the Strategy and Program

68. The Philippines is an “OCR only” country, and there is not expected to be any shortage of OCR resources during 2005–2007. Maintaining engagement in priority sectors with reduced or no project lending during the CSP period will call for alternative interventions financed from grant resources. Support to LGUs and GOCCs may also require new approaches such as municipal bond floats, and project development or maintenance funds. Meanwhile, policy studies will help address longer-term development constraints and define the capacity development necessary to remedy these concerns. They call for higher levels of KPS, ETSW, technical assistance, policy dialogue and workshops, advocacy with civil society, and stakeholder partnerships. ADB’s existing envelope of grant fund resources is inadequate (averaging $2 million annually over 2000-2005) and the product mix is restricted. The complex nature of the problems may call for a more flexible “project preparatory-cum-advisory” facility that could deal with larger issues often outside the scope of PPTA. Some of the funding and resources shortfall may be met from co-financing and agreements with other development partners, but these sources have their own restrictions, programming constraints, and processing guidelines that may delay ADB’s timely response to the needs of the country. Although there are a number of grant facilities available to the Government from various development partners, the Government’s ability to align these resources and encourage joint operations so as to optimize development outcomes has been limited. While ADB can assist this process, the staff time and resources spent in aligning assistance with the programs and strategic priorities of other development partners should not be underestimated.
69. The Philippines portfolio has been high maintenance in recent years for both ADB and Government counterpart agencies. Despite the reduction in the number of ongoing loans, staff resource intensity will remain high, to ensure a focus on outcomes. Project administration missions and consultations will need to maintain the momentum of ongoing projects and prevent decline in portfolio quality.
70. ADB support to the Mindanao peace process is a special case that will require additional resourcing. Funding to continue and extend the JNA, and a possible eventual contribution to the Mindanao Trust Fund, needs to be secured. In addition, a new “delivery mechanism” will need to be defined—likely at the local level and without the need to pass through the restricted Government budget process. ADB has no substantive direct grant product for NGOs, community organization and civil society groups. Such facilities for localized, direct delivery of assistance would help ensure the success of any operations in the conflict-affected communities. A direct grant facility could also be highly effective for advocacy, outreach, and communication in support of other key policy objectives and the reform agenda.

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