ADB eyes approval of loans for transport, infrastructure

THE ASIAN Development Bank (ADB) is eyeing to approve loans related to the Philippine government’s transport, infrastructure and social sector projects as part of its lending program this year.

“I think there will be more programs further down. We continue to support the ‘Build Better More’ agenda of the government,” ADB Country Director for the Philippines Pavit Ramachandran told reporters on the sidelines of an event last week.

“These are continuing projects which we want to make sure are seen to completion and fruition,” he added.

Mr. Ramachandran said one of the loans lined up this year is another package for the North-South Commuter Railway.

“The North-South Commuter Railway is an important investment, something we are committed to support. That will be one of the projects. It’s an ongoing investment but the next tranche of investment has to be approved,” he said.

The North-South Commuter Railway is among the Marcos administration’s 16 flagship infrastructure projects.

The 147-kilometer railway will connect Clark Airport to Calamba, Laguna. The government is targeting its partial operation by the end of 2028. The project has a total funding of around P873 billion and is co-financed by ADB and the Japan International Cooperation Agency (JICA). 

Mr. Ramachandran said the next tranche of financing for the railway would be a “sizable loan.”

“It will be upwards of a billion (dollars) because it’s the Malolos-Clark component of it. These are all contracted sections but it’s about making sure the financing is done.”

Meanwhile, the ADB is also aiming to provide funding for social development projects.

“We are also looking at some social sector projects including support for the food voucher program,” Mr. Ramachandran said.

The amount is yet to be finalized, but the financing for the food voucher program will likely range from $300 million to $400 million, he added.

In 2023, the Department of Social Welfare and Development (DSWD) launched the pilot of the food stamp program. Under the program, beneficiaries receive electronic transfer cards that are loaded with food credits. The DSWD scaled up the implementation of the program last year.

The multilateral lender also has investments planned for the health sector and infrastructure, Mr. Ramachandran added.

Meanwhile, Mr. Ramachandran said they are still finalizing the full lending program for 2025.

“We haven’t locked in the details of the lending program because we haven’t done what we call our programming mission,” he said.

“That will happen perhaps towards the end of March-April where we’ll sit down with the government and other stakeholders and discuss the details of individual projects, the total. At this stage, we don’t have the full scope of that fully laid out yet.”

The ADB earlier said it is allocating $24 billion in lending to the Philippines for 2024 to 2029. — Luisa Maria Jacinta C. Jocson