The country’s finance chief has successfully obtained commitments from the Asian Development Bank (ADB) to support priority development initiatives for the Philippines.
These endeavors primarily aim to advance digitalization, enhance human capital and infrastructure and fortify disaster preparedness, the Department of Finance (DOF) said in a statement yesterday.
In a high-level meeting with the ADB and the country’s economic managers last April 17, ADB president Masatsugu Asakawa said the above key strategic priorities will be reflected and aligned in its upcoming Country Partnership Strategy (CPS) for the Philippines.
Finance Secretary Ralph Recto expressed enthusiasm in continuing closer cooperation with the ADB team as the CPS is being finalized.
In particular, the finance chief sought more support from the ADB for the government’s digitalization program to improve tax collection efficiency, especially now that a fourth of Filipino consumers have moved to e-commerce.
He emphasized that slow adaptation to digitalization amidst the rising e-commerce would result in an immense potential revenue leakage.
To this end, the ADB has committed to closely work with the Philippine government on a proposed Digital Transformation Project for the Bureau of Internal Revenue as part of the bank’s long-standing support on the country’s tax reform initiatives and domestic resource mobilization efforts.
Meanwhile, Recto urged the bank to increase its assistance in strengthening the country’s human capital development, particularly in education and nutrition programs to uplift the quality of life of every Filipino.
With the recent enactment of the Public-Private Partnership Code, he also encouraged the ADB to help the country attract more investors for its flagship infrastructure projects, especially in power and physical and digital connectivity, to boost competitiveness.
He likewise called for strengthened collaboration in harnessing renewable energy resources to accelerate the Philippines’ transition to clean energy.
The DOF also conveyed and sought the bank’s support for the Philippines’ bid to host the Loss and Damage Fund, a global climate fund established in November 2023 under the United Nations Framework Conference on Climate Change.
Overall, Asakawa reaffirmed the bank’s commitment to strengthening its strong partnership with the Philippines as it heads towards becoming an upper-middle-income country.
As of December 31, 2023, the ADB is the Philippines’ second-largest official development assistance (ODA) partner with a total ODA commitment of $11.40 billion.
Since the start of the current administration’s term, a total of around $4.48 billion in ODA loan financing has been secured from the ADB for priority programs and projects for business and employment, agriculture, inclusive finance, domestic resource mobilization and infrastructure development.
