ADB’s P1.74-B loan will tighten PPP mgm’t

Multilateral lender Asian Development Bank (ADB) approved a $30 million or P1.74-billion loan to the Philippines to help it implement and track 35 projects under public-private partnership schemes from 2025 to 2029.

“Through this new loan, ADB is helping ensure the continuous preparation of bankable and feasible climate-resilient PPP projects as well as the availability of global expertise for successful PPP implementation,” ADB Philippines Director Pavit Ramachandran said.

In a statement, ADB said the loan will replenish funds for the Public-Private Partnership (PPP) Center’s Project Development and Monitoring Facility.

The new ADB loan involves the creation of a comprehensive capacity building program which will allow the government to quickly determine the types of projects the private sector is mostly seeking, the financial risks of the projects, and their environmental impacts.

176 projects in pipeline

Based on PPP Center’s data, there are 176 national and local projects in its pipeline amounting to about P2.5 trillion.

Meanwhile, 56 projects have been completed and 218 projects are still being built.

Under the Marcos administration, 186 infrastructure flagship projects (IFPs) have been approved through the National Economic and Development Authority (NEDA), as the government aims to upgrade the country toward an upper middle income status by 2025.

From the total IFPs, 43 were set for PPP financing as the third preferred method of the government, after the official development assistance mechanism which has 83 projects and the national budget mechanism with 51 projects.

“The Philippines is considered one of the leaders in the Asia and the Pacific region in the use of PPPs as a modality for addressing infrastructure gaps and pursuing sustainable growth and development,” Ramachandran said.