MANILA – The Asian Development Bank (ADB) vowed increased funding for various infrastructure projects thoughout the Philippines, touted as one of Asia’s fastest growing economies, but said it would pay special attention to Mindanao.
The multilateral development bank has reaffirmed its commitment to eradicate poverty through achieving inclusive growth in Asia and the Pacific region, as the Philippines concluded its five-day hosting of the 51st ADB annual meeting.
Focus on Mindanao
“We want to invest more in Mindanao. To sustain peace in Mindanao, we need to develop Mindanao in a broader sense. We had a very big road project in Mindanao last year, and we also support transport (development) in Davao,” said ADB President Takehiko Nakao.
The government’s development planning agency has identified Metro Davao as among the country’s most highly urbanized areas.
The Philippines has obtained from ADB a USD380-million loan intended to expand Mindanao’s road network, as well as other key infrastructure projects under its “Build, Build, Build” infrastructure program.
President Rodrigo Duterte said the Asian-Pacific region, to which the Philippines belongs, is fast emerging as home to the most vibrant economies in the world, supported by ADB’s efforts and assistance through grants and financing.
“With the massive infrastructure investments, we expect Mindanao to lead in the nation’s growth. These investments shall be accompanied by intensive efforts and reforms in governance,” the Chief Executive said during the ADB annual meeting.
Focus on Infrastructure
Socioeconomic Planning secretary and National Economic and Development Authority (NEDA) Director-General Ernesto Pernia urged the Bank to further support the country’s infrastructure program, especially for projects that would address Metro Manila’s traffic problem.
NEDA undersecretary for Investment Programming Rolando Tungpalan said “the government could have dialogue with them (ADB) and thresh out which component of the congestion, or the factors of congestion, are best addressed by them.”
Easing traffic congestion in Metro Manila and other major cities, and rural development are among the priorities in the provision of support for the Philippines under ADB’s Strategy 2030.
“We need to support the Philippines metro areas, how to mitigate these traffic difficulties, and how to support the railway projects, and the LRT (Light Rail Transit) or MRT (Mass Rail Transit),” added Nakao.
There are 12 major infrastructure projects in the pipeline worth USD4.44 billion under the transportation, water utilities and urban infrastructure sub-sectors, or about 65 percent of the total ADB lending portfolio to the Philippines.
Pernia said the ADB is also providing the country USD100-million soft loan for project preparation and facilitation.
The Duterte administration’s “Build, Build, Build” infrastructure program is expected to spend some P8 trillion over the next five years.
“Many things can be facilitated by infrastructure –mobility of people, connectivity and then access to opportunities. Poverty reduction is greatly helped by infrastructure, employment generation,” added Pernia.
The ADB chief further said the Duterte government has several agenda which are in line with that of the multilateral development bank for the Philippines, including rural development, education, and some gender issues to empower women.
The Bank extended USD16.5 billion as of February this year to finance 159 developmental projects in Southeast Asia, with the Philippines among its biggest clients cornering 21 percent (USD3.5 billion).
Priorities under Strategy 2030
The multilateral development bank has bared its 10 priorities under the so-called “Strategy 2030”, a new long-term strategy to respond to the rapid changes in the Asia-Pacific countries in line with its commitment to eradicate poverty in the region.
“We will mobilize private sector resources to meet the region’s huge development financing needs. Our private sector operations help fill market gaps and promote private sector participation in infrastructure and other development finance,” Nakao said during a session of the Board of Governors on Saturday.
Nakao noted the ADB would further scale up private sector operations, widen their geographic coverage, including new and frontier markets, and expand operations in social sectors, such as health and education.
“We will also continue to promote the effective use of public-private partnerships. We will enhance resource mobilization through credit enhancement operations and co-financing with bilateral and multilateral partners,” he said.
It will also work with Asia-Pacific countries to build more quality infrastructure and other development projects.
“ADB will help governments enhance their capacity to prepare, implement, and operate high-quality projects, and we will help raise standards globally for environmental and social safeguards, sound financial management, and anti-corruption,” he added.
In the Philippines, the ADB chief said it was financing urban mass transport in Manila and Davao, the railway connecting Malolos and Clark, roads and bridges in Mindanao, and clean water and sanitation projects in local communities.
Nakao cited other priorities in the Strategy 2030, including tackling remaining poverty and increasing inequalities in the Asia and the Pacific through expanded social services; accelerating progress in gender equality; and scaling up support to combat climate change by building climate and disaster resilience and enhancing environmental sustainability.
Strategy 2030 also aims to build livable cities that are competitive, green, resilient, and inclusive; promote rural development and food security; foster regional cooperation and integration; and further strengthen ADB’s role as a provider and facilitator of knowledge.
“We will continue to use our financial resources efficiently and creatively,” said Nakao. “We will expand our presence on the ground. We will dramatically modernize business processes to speed up our services to clients.”
In his speech, Finance Secretary and outgoing chairman of the ADB Board of Governors Carlos Dominguez III believed that the new roadmap could help the ADB to improve its capacity to adapt to the impacts of rapid advances in digital technologies.
“ADB Strategy 2030 is a good beginning. It is not a fully developed program for fully adjusting to the new economic balance of power as well as coping with the enormous forces unleashed by technologies. That program will evolve into place – but only if we are prepared to reinvent and rethink,” he said. (PNA)
