$100-M ADB loan for PH infra OKd
To fast-track the rollout of infrastructure projects under the government’s “Build, Build, Build” program, the Asian Development Bank is extending a $100-million loan to the Philippines for its Infrastructure Preparation and Innovation Facility (IPIF).
In a statement, the Manila-based multilateral lender said its board had approved the bulk of financing for the IPIF, ADB’s first technical assistance loan extended to the Philippine government. The loan will help the departments of public works and transportation in preparing infrastructure projects using global best practices.
“The new loan, along with the recently approved $5-million technical assistance grant, serves as a catalyst for the government’s project management and monitoring system. It will strengthen the government’s project facilitation and monitoring systems, reduce infrastructure bottlenecks, and help relevant agencies systematically monitor project progress and address operational issues at every stage of project planning, construction and operation,” the ADB said.
The government will contribute $64.06 million for the $164.06-million IPIF, which was targeted for completion by the second quarter of 2021, it added.
Richard Bolt, ADB country director for the Philippines, told reporters in a briefing that the IPIF was expected to support the preparation of $3.8 billion worth of public infrastructure projects, including new airports, ports, railways, roads and bridges, and flood control systems.
“The flagship infrastructure projects under the ‘Build, Build, Build’ program will spur economic growth and improve people’s living standards. Better infrastructure will lower the cost of doing business, shorten travel times, and usher in more economic opportunities in remote areas. It will also make it easier for people to access education, healthcare, and other social services,” Bolt said in a statement.
According to Bolt, the government is on the right track in addressing infrastructure concerns to boost economic growth.
Aekapol Chongvilaivan, ADB’s economist for the Philippines, said among the flagship infrastructure projects in the pipeline whose preparation would be financed by the IPIF were the Davao-Digas segment of the Mindanao Railway, the Philippine National Railways-South Line’s commuter and long-haul segments, Laguna Lakeshore Road Network, as well as Northeastern Luzon Expressway, and roads and bridges mostly outside Metro Manila.
The Duterte administration early this year unveiled the “Build, Build, Build” program aimed at ushering in “the golden age of infrastructure” after years of neglect.
Under this, the government would roll out 75 flagship, “game-changing” projects, alongside plans to spend up to P9 trillion on hard and modern infrastructure until 2022.
