September 29, 2024 | 12:00am
MANILA, Philippines — The Philippines is among the countries that can tap a new financing facility under the Asian Development Bank that aims to support investments in the education sector.
In a statement, the ADB said it signed an agreement with the International Finance Facility for Education (IFFEd) for at least $500 million worth of new education funding for lending to lower middle-income countries (LMICs) in Asia-Pacific.
“The following ADB DMCs (developing member countries) are currently eligible for IFFEd funding: Bangladesh, India, Mongolia, Pakistan, Papua New Guinea, the Philippines, Sri Lanka, Timor-Leste, Uzbekistan and Vietnam,” the ADB said.
Under the financing partnership, the Swiss foundation IFFEd will guarantee $125 million of ADB’s sovereign loan exposure across all sectors known as a synthetic portfolio.
It will also provide an initial $50 million in grants.
The partnership is expected to boost the amount of capital ADB can lend, while reducing borrowing costs for DMCs.
“By pooling catalytic and concessional financing, this initiative means our lower middle-income DMCs can scale up their investments in education and skills – vital to building knowledge-based economies – along with other sectors at the same time,” ADB vice president for sectors and themes Fatima Yasmin said.
Projects funded by IFFEd can support ADB programs from early childhood development and school education to technical and vocational training, skills development and tertiary education.
LMICs need support as they face an education crisis.
Over 50 percent of students in these countries are unable to read simple text by age 10 despite attending school, according to the ADB.
Graduates in these countries also lack the skills to find jobs, leaving employers unable to fill vacancies.
“Investing in education and skills in LMICs – home to nearly half of the world’s children and youth – is key to powering long-term economic growth and making progress on global health, climate and equity goals,” IFFEd founding CEO Karthik Krishnan said.
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