Philippines Country Office

Improving Portfolio Performance

Over the past two years, the Philippines loan portfolio has been transformed from what was, for a long time, one of ADB's weakest performers to what is today among the better performers. ADB has worked with Government through an intensive, demanding, and highly instructive cleanup process to establish and maintain a quality portfolio and to be more aware of pitfalls that erode project quality-at-entry.

The cleanup's ultimate objective is to improve the portfolio's development impact and project outcomes. It involves

• restructuring projects, or realigning project scopes and resources to the primary project goals for more timely delivery of envisaged benefits
• canceling loans partially or in full to address poorly performing and non-performing projects.

The table and charts highlight significant improvements in loan performance through the cleanup process.

Improvement in Portfolio Quality Indicators

PHI: Portfolio Performance Indicators, 2000 - 2004