The Asian Development Bank (ADB) has approved a $300 million policy-based loan to support the country’s efforts to strengthen the framework under which the private sector can participate in the “Build, Build, Build” (BBB) infrastructure development program.

The ADB-supported programs under the Expanding Private Participation in Infrastructure Program (EPPIP) subprogram 2 seek to create the enabling policy environment that will allow public-private partnership (PPP) projects to flourish using private sector expertise and innovation.

“PPP can raise the quality of life for citizens by providing reliable public services through efficient infrastructure. Reforms under the EPPIP program have been successful in stimulating the PPP market and improving the quality of infrastructure projects in the Philippines,” said ADB Senior Trade Specialist Cristina Lozano.

The government, given the fast-growing economy, the country’s archipelagic geography, expanding population and rapid urbanization, aims to raise infrastructure investments to 7.4 percent of gross domestic product by 2022 from 5.1 percent in 2016.

The BBB program, part of the medium-term Philippine Development Plan, is estimated to require a total $168 billion in investments for 75 high-impact priority projects nationwide. To finance this, the government wants to use an optimal funding mix composed of government spending, official development assistance and private capital.

ADB has been supporting reforms that helped ensure sustainable funding for government direct and contingent support to PPP, improve long-term infrastructure planning, strengthen the government’s capacity to manage the PPP program and enhance the legal framework for PPP preparation, approval and implementation.

Reforms also helped facilitate the use of PPP by local government units (LGU) as an alternative in pursuing infrastructure development. The government-run PPP Center provided support to LGU to develop and implement PPP projects in priority sectors such as water supply and sanitation, solid waste management and urban transport.

“The Philippines has made significant progress since the PPP program was launched in late 2010,” said ADB Country Director for the Philippines Kelly Bird. “With a huge project pipeline being rolled out under the BBB program of President Rodrigo Duterte, leveraging public resources via private sector participation remains relevant.”

Since 2010, the government has awarded a total of 16 national PPP projects worth around $6.2 billion, of which 12 were tendered and awarded during the implementation of EPPIP.

Feasibility studies for six projects were also completed during the program period.