The Asian Development Bank (ADB) said it has approved $36.5 billion as its cumulative sovereign commitments to the Philippines in 2024.
In a fact sheet on the Philippines posted on its website on Sunday, the ADB said its Philippine commitments covered 647 public sector loans, grants, and technical assistance.
In 2023, the Philippines received 636 public sector loans, grants, and technical assistance with a cumulative value of $34.3 billion.
According to the ADB, commitments refer to financing approved by the ADB’s Board of Directors or Management for which the legal agreement has been signed by the borrower, recipient, or investee company and the ADB.
It comprises the amount indicated in the investment agreement, which may or may not be equal to the approved amount, depending on the exchange rate at the time of signing.
According to the fact sheet, sovereign commitments to the Philippines amounted to $2.205 billion in 2024 alone. The comparable figure for the previous year was not available.
Meanwhile, the multilateral agency said its current sovereign portfolio in the country, which consists of ADB-financed loans, grants, equity investment, and sovereign guarantee commitments but not financially closed, includes 25 loans worth $10.2 billion.
“The Philippines is among the largest recipients of sovereign support from the Asian Development Bank (ADB) and is currently the leading client for public–private partnership operations,” the ADB said.
ADB highlighted some of its support for the Philippines last year, such as the approval of financing to construct a new 37.5-kilometer climate-resilient expressway along the country’s biggest lake.
“The Laguna Lakeshore Road Network Project will promote regional connectivity, increase access to jobs and business opportunities, and cut travel time between Manila and Laguna province by at least 25 percent,” the Manila-based agency said.
“ADB also remains committed to supporting key policy reform initiatives through the Climate Change Action Program (CCAP), Subprogram 2 and the Public Financial Management Reform Program (PFMRP), Subprogram 1,” it added.
CCAP supports the government in achieving its nationally determined contribution targets by accelerating needed reforms to transition key sectors such as agriculture, energy, and transport toward climate-resilient and low-carbon pathways.
The PFMRP, on the other hand, will improve national budget frameworks, empower local governments, and establish a public financial management system in the Bangsamoro Autonomous Region in Muslim Mindanao.
ADB said it also provided financing to augment the government’s Project Development and Monitoring Facility.
“This will help sustain efforts by national government agencies and local government units to identify, develop, and manage bankable public–private partnership projects,” it said.
ADB said the country also represents a growing market for ADB’s non-sovereign operations, reflecting its expanding development needs and opportunities.
As of December, the cumulative non-sovereign commitments totaled $1.43 billion, while for 2024 alone, they amounted to $174.4 million. The comparable figures for 2023 are not available.
ADB highlighted that in 2024, ADB joined a consortium that provided a $115 million financing package to Asialink Finance Corp. to expand its working capital and support small and medium-sized enterprises (SMEs), especially women-led SMEs.
It also committed to lending up to $20 million to housing developer Lhoopa Inc. to help deliver affordable housing for average-income earners and reduce the country’s housing shortage.
ADB delivered $10 million in additional equity financing for retail store Dali to assist in expanding its retail store network and installing off-grid rooftop solar panels on some of its branches and distribution centers. Meanwhile, a loan of about $12 million is helping Buskowitz Solar Inc. fund multiple solar rooftop projects on commercial and industrial buildings.
“ADB also provided transaction advisory services to the government for the nearly $3 billion Ninoy Aquino International Airport modernization project, the largest solicited public-private partnership project in the country in nearly 25 years,” the bank said.
ADB also said that its cumulative sovereign and non-sovereign loan and grant disbursements to the Philippines amounted to $27.96 billion in 2024, compared to $26.21 billion in 2023.
However, the ADB said the capacity of Philippine government agencies to implement large and complex infrastructure projects requires further strengthening.
ADB said it works closely with the government to enhance national and local agencies’ technical and institutional capacities; improve interagency coordination; and foster partnerships among the government, private sector, and development partners.
