ADB Grants $30 Million Loan to Strengthen Public-Private Partnerships in the Philippines
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Manila, Dec 13 (NationPress) The Asian Development Bank (ADB) stated on Friday that it has sanctioned a $30 million loan to assist public-private partnership (PPP) initiatives in the Philippines, aiming to enhance infrastructure development, promote climate action, and boost economic competitiveness.
The ADB indicated that this loan will replenish the Project Development and Monitoring Facility overseen by the government's Public-Private Partnership Centre, which is crucial for the design and execution of viable PPP projects.
Additionally, it will aid in bolstering the capabilities of implementing agencies and local government units to effectively develop and manage these initiatives, as reported by the Xinhua news agency.
The loan is anticipated to support up to 35 national and local PPP projects from 2025 to 2029. Each project will undergo climate risk assessments to ensure they align with the Philippines' nationally determined contributions.
These projects are set to enhance railways, roads, transportation networks, and essential community facilities.
According to Pavit Ramachandran, the ADB Philippines Country Director, "The Philippines is recognized as a leader in the Asia and Pacific region in utilizing PPPs to address infrastructure deficiencies and pursue sustainable growth and development."
On Wednesday, the ADB also approved a $500 million policy-based loan to assist the Philippines in executing its public financial management (PFM) reform agenda, ensuring quality public services for the Filipino populace.
The Public Financial Management Reform Programme (Subprogramme 1) aims to enhance national budget frameworks, empower local governments, and create a PFM system within the Bangsamoro Autonomous Region in Muslim Mindanao, located in southern Philippines.
The ADB emphasized that the new programme encourages equitable and practical devolution of public services in accordance with the archipelago's Mandanas ruling and fosters local investments in climate resilience and disaster preparedness.
The Mandanas ruling stipulates that all national taxes and fees collected by the national government should be included in calculating revenue allocations to local government units.
The programme also commits to supporting the Bangsamoro government's PFM systems, covering local governance, budgeting, and revenue frameworks.
As part of this initiative, the ADB, along with the Public Expenditure and Financial Accountability (PEFA) Secretariat and various development partners, will perform the PEFA Assessment to guide the nation's PFM reform trajectory.
