Frequently Asked Questions : Philippines

Frequently Asked Questions About ADB's Activities in the Philippines

What is ADB and how does it help the Philippines?
Who are ADB's clients in the Philippines?
How can non-government organizations (NGOs) and the private sector be involved in ADB projects in the Philippines?
Can local government units (LGUs) receive direct assistance from ADB?
What are the types of assistance that ADB offers?
What are the levels of lending and grants that ADB provides to the Philippines annually?
What are the terms and conditions of ADB loans?
How does ADB process requests for funding?
What will I do if I come across evidence of corruption in projects supported by ADB?
How does PhCO help ADB clients?

Review a complete list of frequently asked questions about ADB.

1. What is ADB and how does it help the Philippines?

ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, we are now owned by 67 members, mostly from the region. Our headquarters is in Manila and we have 26 other offices around the world.

We support development projects of all developing member countries including the Philippines, which is one of the founding members of ADB. Our resources are directed to projects across different sectors primarily to reduce poverty and improve the living conditions of many Filipinos.

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2. Who are ADB's clients in the Philippines?

ADB's development partnership includes a wide range of stakeholders representing Government, civil society, donor institutions, the business community, and research and academic institutions.

ADB primarily provides resources to the Government of the Philippines (GOP) to support its development projects. The Department of Finance (DOF) is ADB's main counterpart. The different line departments, Government Owned and Controlled Corporations (GOCCs), and Government Financial Institutions (GFIs) execute or implement the projects across various sectors. Oversight agencies, particularly the DOF, National Economic and Development Authority, and Department of Budget and Management help ensure smooth identification implementation of the projects.

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3. How can non-government organizations (NGOs) and the private sector be involved in ADB projects in the Philippines?

As a rule, ADB works through the Government of the Philippines in supporting NGOs. ADB recognizes the growing importance of NGOs' role in development and promotes ADB-NGO cooperation in strengthening civil society's participation in the development process.

In February 2001, ADB established the NGO and Civil Society Center at its headquarters in Manila, Philippines. The center seeks to find new ways of working with NGOs and aims to integrate better the experience and knowledge of working with NGOs in ADB operations.

NGOs in the Philippines, for instance, are now involved in implementing projects under the Japan Fund for Poverty Reduction, which provides resources to innovative pilot projects designed to reduce poverty.

ADB provides direct assistance to private enterprises through equity investments and loans without government guarantees. It also provides loan guarantee and commercial cofinancing facilities. Learn more about ADB's work in private sector development.

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4. Can local government units (LGUs) receive direct assistance from ADB?

ADB provides resources directly to National Government Agencies (NGAs), Government Owned and Controlled Corporations (GOCCs), and Government Financial Institutions (GFIs), since these are supported by sovereign guarantee from the Government of the Philippines.

LGUs, can, however, benefit from ADB through NGAs or fund conduits such as GFIs and the Municipal Development Fund (MDF). Many LGUs are beneficiaries of ADB's ongoing projects for LGUs being implemented by the Government and the various fund conduits. Potential LGUs may access these funds by coordinating directly with the implementing agencies.

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5. What are the types of assistance that ADB offers?

ADB provides assistance to the Government of the Philippines in the form of loans, and technical assistance that are usually grants. Loans support development projects in sectors and areas agreed upon by both ADB and the Government. Besides project loans, we also provide program and sector loans, which support policy, sector, and institutional reforms.

We extend technical assistance (TA), in three forms:

Project Preparatory TA (PPTA), which helps in project preparation and detailed engineering
Advisory TA (ADTA), which aids in institutional strengthening, sector and policy studies, and non-project-related human resource development
Regional TA (RETA), which assists development activities covering many countries in the region/sub-region.

ADB also administers, on behalf of the Government of Japan, the Japan Fund for Poverty Reduction, which provides resources to innovative pilot projects designed to reduce poverty.

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6. What are the levels of lending and grants that ADB provides to the Philippines annually?

ADB's level of financial support varies yearly, depending on factors such as the Government's need for assistance, readiness of projects, status of sector reforms, and the availability of counterpart budget resources. Over the past five years, ADB provided an average annual lending of US$ 290 million. For 2003 to 2005, ADB has programmed lending of about US$270 million per year.

Our TA activities range from US$4 million to US$9 million per year, depending on the availability of ADB funds. Learn more about ADB Activities in the Philippines.

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7. What are the terms and conditions of ADB loans?

ADB offers its public and private sector borrowers LIBOR-based loan (LBL) carrying a floating lending rate that consists of a six-month LIBOR and a spread fixed over the life of the loan. ADB's lending rate for Government loans is LIBOR+0.60 ADB spread, usually with a repayment period of 20 years including a grace period of 4-5 years. ADB also charges a front-end fee of 1% and annual commitment fee of 0.75% computed on the scheduled undisbursed portion of the loan.

View today's indicative lending rates.

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8. How does ADB process requests for funding?

ADB has a Project Cycle, which is standard for all developing member countries. For public sector funding requests, we encourage Government agencies to

coordinate initially with the National Economic and Development Authority (NEDA) and submit proposal for Investment Coordination Committee review and processing
seek all necessary Government approvals and clearances
coordinate closely with both NEDA and ADB to monitor progress of project processing and approval.

For private sector funding requests, individual sponsors of eligible projects may coordinate with ADB's Private Sector Operations Department to learn more about the processing and approval of private sector investment activities.

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9. What will I do if I come across evidence of corruption in projects supported by ADB?

ADB has a fundamental commitment to ensuring that its staff and projects adhere to the highest levels of integrity. We will evaluate with strict confidentiality reported cases of fraud and corruption in ADB-financed projects.

You may report allegations by contacting our Integrity Division (OAGI) in the Office of the General Auditor:

Email: anticorruption@adb.org
Telephone: + 632 632 5004
Facsimile: + 632 636 2152

Integrity Division (OAGI)
Office of the General Auditor
Asian Development Bank
6 ADB Avenue
Mandaluyong City 1550
Metro Manila, Philippines

Mailing Address:
P.O. Box 789
0980 Manila, Philippines

Learn more about Anticorruption.

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10. How does PhCO help ADB clients?

PhCO is ADB's link to Government, NGOs, civil society or anyone who is interested to know about and participate in ADB's activities in the Philippines. Learn more About PhCO