FILE PHOTO: A picture shows the logo of the Asian Development Bank (ADB) displayed outside its headquarters in Manila on September 2, 2010. – Israel has become the newest non-regional member of the ADB, the Philippines-based lender announces on Friday, September 27, 2024, with an analyst cautioning that the move might cause “polarization” in the institution. Photo by TED ALJIBE / Agence France-Presse
The Asian Development Bank (ADB) is eyeing to approve $1.7 billion in fresh funding for the Philippines before the year ends.
Speaking to reporters, ADB country director for the Philippines Pavit Ramachandran said the Manila-based multilateral lender was targeting to green-light the first round of financing under a multi-tranche loan to bankroll the Laguna Lakeshore Road Network project later this year.
The first tranche of the loan amounting to $1.2 billion will provide the initial financing for the project that aims to build a ”climate-resilient” expressway along Laguna Lakeshore to reduce traffic congestion.
Ramachandran explained that the big-ticket undertaking would also be co-funded by the Korean Exim Bank and the China-backed Asian Infrastructure Investment Bank. The two would pitch in a combined $1.1 billion to the project, documents showed.
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Meanwhile, Ramachandran said the ADB was also looking to approve a $500-million contingent disaster facility for Philippines which, he said, was “very vulnerable” to the effects of climate change.
“We are in the process, last stages, of having the Laguna Lakeshore Road Network project presented to our board for approval,” he said.
“And then there’s one on contingent disaster facility… the idea being there’s a ready resource available for the government in the event of natural disasters,” he added.
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Last month, the ADB launched a new lending program for the Philippines spread over six years to help the country reach upper-middle income status while staying resilient in the face of climate challenges. The bank said sovereign lending to its host country was expected to total $24 billion between 2024 and 2029 under a new “country partnership strategy.”
There’s also potential for the Philippines to borrow an even bigger amount, ADB added, citing “substantial government demand”. The bank said the lending plan seeks to balance its support for human development and climate change resilience with the country’s need for more infrastructure financing.
In 2023, ADB provided $4.5 billion in both sovereign and non-sovereign assistance to the Philippines.