THE Asian Development Bank (ADB) is extending $1.86 billion worth of loans to the Philippine government in the next three years, according to its latest Country Operations Business Plan (COBP) in the country.
Under the 2012-14 COBP, the ADB will extend $620 million annually to the country in the form of loans. The ADB will also extend technical assistance under its non-lending program worth $21.6 million during the three year COBP.
“The Country Operations Business Plan 2012–14 is based on a comprehensive review of the operational program—taking into account emerging priorities of the new administration, ADB’s Strategy 2020, and lessons from the implementation of the previous programs. The proposed program covers three of the five core areas of operation in Strategy 2020—infrastructure, environment and education,” the ADB said.
Apart from this, the ADB will also be extending support through its private-sector operations department aimed at being responsive to the needs of the private sector and oriented by the priorities of the government.
The bank explained that private- sector operations will be flexible in the choice of projects to invest in, but will be guided by the alignment with the country partnership strategy, development impact and financial viability.
“Investments in infrastructure, including the government’s Public–Private Partnership Projects, as well as renewable energy and efficiency projects, will remain a high priority,” the ADB added.
Based on the pipeline of projects to be financed by the ADB, there are five possible projects worth $693.91 million intended for 2012, another five projects worth $690 million intended to be financed by 2013, and three projects worth $620 million up for financing by 2014.
The firm pipeline for 2012 will require a loan worth $643.91 million, while the standby pipeline includes Water District Development Sector Project which will require a loan worth $50 million.
The ADB said the Comprehensive Development for the Agusan River Basin Project (formerly Agusan Integrated Water Resources Management), which will be financed by a $100 million-worth loan from ADB; Increasing Competitiveness for Inclusive Growth Program (Subprogram 1) (formerly Investment Climate Program) with a loan worth $350 million; Integrated Natural Resources and Environmental Management Project with a loan worth $123.91 million; and Urban Water Supply and Sanitation Project (PFR 1) with a $70 million-worth loan are included in the firm pipeline.
For 2013 the firm pipeline will require a total loan of $620 million and a standby project, the Solid Waste Management Sector Project, that will require a loan worth $70 million.
The firm pipeline includes the Education Improvement Sector Development Program which will require a loan of $300 million; Local Government Finance and Budget Reform Program Phase 2, $200 million; Disaster Risk Financing Project, $70 million; and Water District Development Sector Project, $50 million.
In the 2014 pipeline, the three projects to be financed are the Increasing Competitiveness for Inclusive Growth Subprogram 2 (formerly the Investment Climate Program), which will require a loan of $350 million; Second Road Sector Institutional Development and Investment Program, $200 million; and Solid Waste Management Sector Project, $70 million.
Meanwhile, the technical assistance under the nonlending program of the ADB will finance eight projects in 2012 worth $7.7 million; six projects in 2013, $7.1 million; and four projects in 2014, $6.8 million.
Projects to be financed in 2012 include the Davao Sustainable Urban Transport Project which will require an assistance of $1 million; Solid Waste Management Sector Project, $1.2 million; Second Road Sector Institutional Development and Investment Program, $800,000; and Second Social Protection Support Project, $800,000.
The other projects are the Tax Administration and Fiscal Management which will receive an assistance worth $700,000; Capacity Development for Participatory Local Government Planning and Public Expenditure Management, $1.5 million; Local Government Finance and Budget Reform Program (Phase 2), $700,000; and Water Sector Governance Strengthening, $1 million.
For 2013 the projects include the Energy Efficient Electric Vehicle Investment Program which will receive an assistance worth $800,000; Mitigation of Climate Change through Increased Energy Efficiency and Use of Clean Energy Project, $1 million; and, Local Government Revenue Generation and Land Administration Information Systems Investment Project, $500,000.
Other projects include the Local Government Water and Sanitation Sector Project which will receive an assistance worth $1.2 million; Capacity Building for Low Carbon Climate Resilience Options, $3 million; and Increasing Transparency and Accountability, $600,000.
For 2014 the ADB said the projects to be financed are the Natural Resource Management Project which will receive an assistance of $1.5 million; Third Road Sector Institutional Development and Investment Program, $800,000; Capacity Development for LGUs in Natural Resources and River Basin Management, $3 million; and Results-Oriented Strategic Planning and Development Management for Inclusive Growth, $1.5 million.
