Philippines and ADB
ADB supports the Philippines’ recovery from the COVID-19 pandemic through its country partnership strategy 2018–2023 — focusing on infrastructure investment, local economic development, and social investments.
ADB is a multilateral development bank whose mission is to assist its developing member countries reduce poverty and improve the quality of life of their people.
Headquartered in Manila, and established in 1966, ADB is owned and financed by its 68 members, of which 49 are from the region and 19 are from other parts of the globe.
Since 1966, ADB has committed public sector loans, grants, and technical assistance totaling $21.9 billion to ADB’s partnership strategy for the Philippines focuses on accelerating infrastructure and long-term investments, promoting local economic development, and investing in people. Cumulative loan and grant disbursements to the Philippines amount to $15.67 billion. These were financed by regular and concessional ordinary capital resources, and other special funds.
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.
As a rule, ADB works through the Government of the Philippines in supporting NGOs. For instance, NGOs are now involved in implementing projects under the Japan Fund for Poverty Reduction, which provides resources to innovative pilot projects designed to reduce poverty.
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Civil society organizations join ADB and Philippine government agencies to strengthen procurement processes for transparency.
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.
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, ADB also provides program and sector loans, which support policy, sector, and institutional reforms.
ADB extends technical assistance (TA) in three forms:
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.
ADB is one of the country’s largest sources of official development assistance, with average annual lending of $767 million in the last 10 years.
ADB’s planned lending in 2018-2020 is expected to total $3.68 billion. More than half of the funds will finance transport, water, and flood management projects, and help the public sector strengthen its capacity to accelerate infrastructure development.
The country operations business plan (COBP), 2018–2020 closely aligns with the recently released Philippine Development Plan (PDP), 2017–2022.
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.
| News Release
ADB has approved a $1 billion loan to help establish a city-wide public transport project in Davao City, the first project in the country to deploy electric bus fleets at scale in support of the Philippines’ efforts to reduce greenhouse gases and promote climate action.
| News Release
ADB has approved a $250 million policy-based loan to support the Philippines in its climate change adaptation and mitigation efforts.
| News Release
ADB approved a $400 million policy-based loan to help the Philippine government further deepen the country’s domestic development.
| News Release
ADB will provide grants totaling $655,000 to nine rural banks and a bank consortium in the Philippines to implement digital transformation solutions aimed at catalyzing financial inclusion, especially in underserved sectors in the country.