MANILA, PHILIPPINES (8 December 2023) — The Asian Development Bank (ADB) has approved a $200 million loan to further support the Philippines in delivering high quality, inclusive, climate-resilient, and low-carbon public infrastructure to boost economic growth and improve Filipinos’ access to jobs, markets, and public services such as education and health care.
The second additional financing for the Infrastructure Preparation and Innovation Facility (IPIF) will support the preparation of complex and critical climate-resilient road, bridge, transport, and flood risk management projects identified by the government as flagship projects. The loan will help accelerate early project implementation through feasibility studies and detailed engineering design that embeds climate-resilient features to support the Philippines in achieving its climate commitments and national adaptation priorities.
“The Philippines has raised its public infrastructure spending in recent years to steer the economy toward a sustainable, high-growth path,” said ADB Senior Transport Specialist Daisuke Mizusawa. “With this additional financing, we aim to help the government scale up the scope of its investments, further improve the readiness and quality of public infrastructure projects, and strengthen public investment management systems.”
ADB will assist in building up the capacity of implementing agencies such as the Department of Transportation and the Department of Public Works and Highways to implement large and complex infrastructure projects. A $1.5 million technical assistance grant will support the strengthening of regulations and policies and enhance investment planning for low-carbon and climate-resilient infrastructure, and the development of frameworks and methodologies to consistently identify and mitigate climate risks in infrastructure projects.
Previous ADB support under the IPIF has helped in the preparation of more than $40 billion worth of ongoing and planned infrastructure investments, exceeding initial estimates. These investments were financed by ADB, other development partners, and the government.
ADB’s support for infrastructure development in the Philippines has steadily grown since 2018, and now accounts for almost 60% of ADB’s total portfolio in the country. The bank has committed financing of $8.4 billion for transport projects, including the Malolos Clark Railway Project and the South Commuter Railway Project, which are part of the North–South Commuter Railway system connecting Metro Manila to nearby northern and southern provinces. These projects, along with other major bridge and public transport projects, are collectively expected to reduce greenhouse gas emissions by 497,866 tons per year.
The bank has also supported the preparation of about $1.3 billion worth of projects that aim to reduce flood risks and enable climate change adaptation in major and principal river basins, including the Integrated Flood Resilience and Adaptation Project (Phase 1).
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.