ADB to approve $2.2 billion financing for three projects

October 10, 2024 | 12:00am

MANILA, Philippines — The Asian Development Bank is set to approve $2.2 billion worth of financing for three projects this year, including the Laguna Lakeshore Road Network.

ADB Philippines country director Pavit Ramachandran told reporters there are three projects in the Philippines to be presented for the multilateral lender’s board approval before the end of the year.

He said among those to be presented is the $1.2 billion loan for the Laguna Lakeshore Road Network.

“It’s part of a facility that at ADB, we call the multi-tranche financing facility….So the first tranche from ADB will be $1.2 billion,” he said.

He said the Asian Infrastructure Investment Bank (AIIB) and Export-Import Bank of Korea are also providing funding for the project.

A document from the ADB showed that $188.18 million will be provided by AIIB, while $904.35 million will come from the Export-Import Bank of Korea for the Laguna Lakeshore Road Network.

“We’ll do one phase in this and the idea is to do the second phase subsequently,” Ramachandran said.

He said the ADB is also set to present for board approval the $500 million funding for a contingent disaster facility that the Philippine government can tap.

“Unfortunately, the Philippines is very vulnerable to natural disasters, geophysical hazards. So this can be triggered in that instance,” he said.

He said the ADB is also planning a $500 million policy-based loan to support public financial management reforms in the country.

For next year, he said the ADB is looking at providing funding for the Metro Rail Transit Line 4 project and a number of flood disaster-resilient projects in Luzon and Mindanao.

Last month, the ADB rolled out its new country partnership strategy (CPS) for the Philippines for 2024 to 2029.

Under the CPS, the ADB is making available $24 billion worth of lending for the country to support its development initiatives.

“Our CPS that I mentioned is really very focused on supporting the Philippines in its efforts to intensify climate action and support. Primarily, I think the focus here is on climate resilience and climate adaptation,” Ramachandran said.

He said the CPS would also focus on mobilizing private sector capital and participation in line with the Philippines’ aim to attract more foreign direct investments and private capital in development efforts.