ASIAN DEVELOPMENT BANK MEMBER FACT SHEET

Philippines: 2019 Committed Loans, Grants, and Technical Assistance ADB’s partnership strategy for the ($ million) focuses on accelerating infrastructure and long-term Loans Technical investments, promoting local economic development, Sovereign Nonsovereign Assistance Grants Total 2,523.30 30.00 5.25 – 2,558.55 and investing in people. – = nil.

Notes: Commitment is the financing approved by the ADB Board of Directors or Management for which the investment agreement has been signed by the borrower, recipient, or the investee company and ADB.

Grants and technical assistance include ADB-administered cofinancing. Philippines

The Philippines has maintained its the Philippines. Cumulative loan and Philippines: Cumulative Lending, Grant, position as one of the fastest-growing grant disbursements to the Philippines a, b, c and Technical Assistance Commitments economies in Southeast Asia in recent amount to $15.67 billion. These were Total years, with average annual gross financed by regular and concessional Amount Sector No. ($ million)d %d domestic product growth at 6.3% since ordinary capital resources, and other Agriculture, Natural Resources, 171 2,075.37 9.49 2010 against 4.5% in 2000 to 2009. special funds. and Rural Development Education 43 2,048.93 9.37 The Asian Development Bank (ADB) Energy 76 3,414.06 15.61 has been a strong partner in the ADB-SUPPORTED PROJECTS Finance 76 2,373.58 10.85 development of the Philippines, the AND PROGRAMS Health 26 373.59 1.71 bank’s host country, and is one of its ADB’s annual lending to the Philippines Industry and Trade 33 592.22 2.71 largest sources of official development Multisector 21 334.07 1.53 reached a record high of $2.5 billion in Public Sector Management 88 5,855.25 26.76 assistance, with average annual lending 2019, mainly due to the bank’s support for Transport 81 3,552.47 16.24 of $952 million over the past 10 years the government’s massive “Build, Build, Water and Other Urban 74 1,258.04 5.75 to 2019. Build” (BBB) infrastructure development Infrastructure and Services Total 689 21,877.57 100.00 The Philippine government wants to program. a Grants and technical assistance include ADB-administered attain upper middle-income status ADB’s Country Partnership Strategy cofinancing. in 2020, rooted on inclusive growth, b 2018–2023 for the Philippines supports Includes sovereign and nonsovereign loans and technical assistance. a socially responsible society, and a c Using primary sector in reporting of commitments. the Long-Term Vision of the Philippines d Numbers may not sum precisely because of rounding. globally competitive economy. In its Towards 2040 (AmBisyon Natin 2040) Philippine Development Plan 2017– 2022, the government placed emphasis Philippines: Ordinary Capital Resources on addressing underinvestment in Nonsovereign Commitments by Product, infrastructure, tackling poverty and 2007–2019 income inequality, and reducing regional No. of Transactions Signed 7 growth disparities. Amount ($ million) Loans 465.55 Since 1966, ADB has committed public Equity Investments 25.00 sector loans, grants, and technical Guarantees 168.15 assistance totaling $21.9 billion to Total 658.70

Published in May 2020 and closely aligns with the Philippine The $200 million additional financing aligned with local preferences, improve Development Plan 2017–2022. for the Infrastructure Preparation and their revenue-raising capacities, and lower Innovation Facility, also approved in 2019, the cost of doing business for the private The partnership strategy also promotes will help the government prepare several sector. inclusive growth and increases focus on transformative projects under its BBB development in Visayas and Mindanao; program. Such projects include long- targets assistance to the bottom 40% of NONSOVEREIGN OPERATIONS span bridges, railways, roads, and flood the population through increased access protection facilities. As a catalyst for private investments, to quality secondary education, labor ADB provides financial assistance to market programs, financial inclusion, ADB approved a $300 million results- nonsovereign projects and financial universal health care, and improved based loan for the Secondary Education intermediaries. Total commitments from social protection; and includes cross- Support Program in 2019. The program ADB’s own funds (in equity and direct cutting support to promote private sector supports government efforts to achieve loans) in 2019 amounted to $3.00 billion participation, gender equality, good inclusive growth by improving access for 38 transactions in economic and governance, environmentally sustainable to high-quality secondary education social infrastructure, the finance sector, development, regional integration, and that responds to labor market needs. and agribusiness. ADB also actively knowledge generation and sharing. This investment is complemented by a mobilizes cofinancing from commercial $400 million policy-based loan, approved In 2019, ADB approved its single-biggest and concessional sources. In 2019, in December 2019, for subprogram 2 project financing in Asia to date, the ADB mobilized $3.28 billion of long- of the Facilitating Youth School-to- Malolos-Clark Railway Project, which term cofinancing and $3.69 billion of Work Transition Program, which aims will use cutting-edge technology to cofinancing in trade finance, microfinance, to improve the employability of Filipino construct a 53-kilometer section of a new and supply chain finance programs. Total youth through labor market programs railway line connecting Metro outstanding balances and commitments and easier access to on-the-job training to the regional business center in Clark, of nonsovereign transactions funded schemes. north of Manila. The new line, part of the by ADB’s own resources stood at North-South Commuter Railway system, In November 2019, ADB approved a $13.78 billion as of 31 December 2019. will provide affordable, reliable, and safe $300 million policy-based loan for the public transport; reduce greenhouse gas Local Governance Reform Program to PARTNERSHIPS emissions; and cut commuting time by empower and equip local government ADB continues to collaborate with half, to about 1 hour. units across the country to deliver services key development partners of the

Philippines: Project Success Rates Philippines: Portfolio Performance Quality Indicators No. of Independently for Sovereign Lending and Grants, 2018–2019 Success Rate Evaluated Projects No. of Ongoing Loansa (as of 31 Dec 2019) 16 Year (%) and Programs 2018 ($ million) 2019 ($ million) 2007 100.0 1 Contract Awardsb, c 423.03 230.83 2008 20.0 5 Disbursementsb 779.91 951.51 2009 50.0 2 No. of Ongoing Grantsa (as of 31 Dec 2019) – 2010 60.0 5 2018 ($ million) 2019 ($ million) 2011 40.0 5 Contract Awardsb, c, d – – 2012 50.0 2 Disbursementsb, d (0.07) – 2013 100.0 1 Actual Problem Projects (%) (as of 31 Dec 2019) 8 2014 – 1 – = nil, () = negative. 2015 50.0 2 a Based on commitments. 2016 100.0 2 b Includes closed loans/grants that had contract awards or disbursements during the year. 2017 50.0 2 c Excludes policy-based lending/grants. 2019 – 1 d Includes only Asian Development Fund and other ADB special funds. Total 48.3 29 – = nil. Note: The success rates reported are based on the ratings from validated PCRs and independently evaluated performance evaluation reports only and do not include self-evaluations. The ratings are reported not by calendar year but for the year ending June (e.g., 2019 success rates are derived from success rates of validated PCRs and PPERs completed from July 2018 to June 2019). With small sample sizes, success rates do not necessarily represent country operations performance. Source: PCR validation reports and project/program performance evaluation reports ratings database as of 31 December 2019.

Philippines: Projects Cofinanced, Philippines: Share of Procurement Contracts for 1 January 2015–31 December 2019 Loan, Grant, and Technical Assistance Projects Cofinancing No. of Projects Amount ($ million) Cumulative Sovereign 17 2,995.71 2018 2019 (as of 31 Dec 2019) Amount % of Amount % of Amount % of Loans 5 2,964.00 Item ($ million) Total ($ million) Total ($ million) Total Grants 3 15.00 Goods, Works, and 878.45 7.09 828.84 5.81 11,435.81 5.89 Technical Assistance 9 16.71 Related Services Nonsovereign 3 622.06 Consulting Services 17.23 2.44 27.39 3.68 514.01 3.84 Total Procurement 895.67 6.84 856.23 5.70 11,949.82 5.75 Top 5 Contractors/Suppliers from the Philippines Involved Top 5 Consultants from the Philippines Involved in Goods, Works, and Related Services Contracts under ADB in Consulting Services Contracts under ADB Loan, Loan and Grant Projects, 1 January 2015–31 December 2019 Grant, and Technical Assistance Projects, 1 January 2015– Contract Amount 31 December 2019 Contractor/Supplier Sector ($ million) Contract Amount R.D. Interior Junior Construction TRA 14.01 Consultant Sector ($ million) and Hebei Road & Bridge Group Pacific Rim Innovation & ANR, EDU, HLT 12.83 Co. Ltd. (JV) Management Exponents Inc. MAC Builders-Fiat Construction TRA 10.42 Renardet Ingenieurs Conseils S.A. TRA 12.47 Services (JV) International Technology EDU 5.26 Webb Fontaine Asia Inc. IND 6.77 Management Corp. BSP & Co. Inc. and Gemma TRA 1.85 Construction Supply Inc. (JV) Tractebel Inc. WUS 4.21 Rudhil Construction & Enterprises ANR 1.04 Center For Environment Studies ANR 2.78 Inc. & Management Others 3,523.24 Individual Consultants 64.96 Total 3,557.33 Others 19.14 ANR = agriculture, natural resources, and rural development; IND = industry and trade; Total 121.65 TRA = transport. ANR = agriculture, natural resources, and rural development; EDU = education; HLT = health; TRA = transport; WUS = water and other urban infrastructure and services.

government, particularly in the areas Trade Finance Program and Supply Chain and $14.27 billion in 2019. Cumulative of infrastructure, finance, public Finance Program. procurement since 1966 has been sector management, and community $194.28 billion covering 219,119 contracts. ADB began cofinancing operations development. in the Philippines in 1972. Since then, In the Philippines, 18,578 contracts worth ADB and the Japan International sovereign cofinancing commitments $11.44 billion have been awarded to Cooperation Agency have partnered for the Philippines have amounted to contractors and suppliers since 1966. to support the government’s priority $6.38 billion for 59 investment projects projects under the BBB program, and $99.99 million for 65 technical Consulting Services particularly the 163-kilometer North- assistance projects. Nonsovereign ADB’s procurement contracts in South Commuter Railway Project, cofinancing for the Philippines has Asia and the Pacific for consulting which is aimed at easing chronic road amounted to $961.12 million for 10 services under loan, grant, and congestion in Manila. Meanwhile, ADB investment projects and $1.13 million for technical assistance operations and the World Bank are partners in three technical assistance projects. totaled $706.15 million in 2018 and supporting the government’s conditional $745.02 million in 2019. Cumulative In 2019, the Philippines received cash transfer program called Pantawid procurement since 1966 has been $2.01 billion in loan cofinancing from the Pamilyang Pilipino Program. $13.4 billion covering 63,327 contracts. Japan International Cooperation Agency Among the country’s bilateral partners, for the Malolos-Clark Railway–Tranche 1. In the Philippines, 7,986 contracts worth the governments of Australia, Canada, $514.01 million have been awarded to A summary of projects with cofinancing and France are active cofinanciers in consultants since 1966. from 1 January 2015 to 31 December various programs, including public– 2019 is available at www.adb.org/ private partnership reforms, youth countries/philippines/cofinancing. OPERATIONAL CHALLENGES employment programs, and local governance reforms. Government spending on infrastructure PROCUREMENT reached over 5% of gross domestic ADB continues to participate in product in 2018 from less than 3% policy dialogue in the Philippines and Each year, ADB provides loans, grants, average in previous decades, and coordinates with government agencies and technical assistance to fund the government aims to further raise to discuss development issues, including projects and activities in its developing this to about 7% by 2022. Given the the direction of development assistance member countries and several billion wide array of infrastructure projects in Mindanao. dollars in contracts to procure goods, under the BBB program, government works, and consulting services. Most agencies’ capacity to roll out such Financing Partnerships contracts are awarded on the basis of large and complex plans will need international competition, which is Financing partnerships enable ADB’s to be further strengthened. ADB is open to firms and individuals from any supporting the government in this area development partners, governments ADB member, regional or nonregional. or their agencies, multilateral through loans, grants, and technical financing institutions, and commercial assistance. The bank is working closely organizations to participate in financing Share of ADB’s Procurement with the government to enhance the ADB projects. The additional funds Contracts technical and institutional capacities of are provided in the form of loans and national and local agencies and staff; Goods, Works, and Related Services grants, technical assistance, and other improve interagency coordination; nonsovereign cofinancing such as B loans, ADB’s procurement contracts in Asia and strengthen partnerships among risk transfer arrangements, parallel loans and the Pacific for goods, works, and the government, private sector, and and equity, guarantee cofinancing, and related services under loan and grant development partners. cofinancing for transactions under ADB’s operations totaled $12.38 billion in 2018 FUTURE DIRECTIONS development, and social investments to Sector Project to improve flood protection help the bottom 40% of the population. systems and infrastructure in six river ADB’s future assistance to the Philippines basins across the Philippines. will focus on larger investments in ADB is preparing the EDSA Greenways fewer sectors, to closely align with Project, which will construct elevated Apart from infrastructure support, the government’s strategic priorities. walkways in four high-density traffic lending operations will be devoted to The bank has rebalanced its financing locations along the EDSA highway in social services, agriculture, public sector program to infrastructure in support of the . It is also preparing the management, tourism development, and government’s BBB program, local economic Integrated Flood Risk Management sustainable water and urban development.

Contacts Philippines Country Office 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 8632 4444 Fax +63 2 8683 1030 [email protected] www.adb.org/philippines

ADB Headquarters 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 8632 4444 Fax +63 2 8636 2444

Department of Finance 6th Floor, Department of Finance Building About THE Philippines and ADB corner Pablo Ocampo Street Metro Manila, Philippines ADB Membership Tel +63 2 8523 9219 Joined 1966 Fax +63 2 8526 8474 Shareholding and Voting Power Number of shares held: 252,912 (2.377% of total shares) Useful ADB websites Votes: 292,026 (2.196% of total membership, Asian Development Bank 3.372% of total regional membership) Overall capital subscription: $3.50 billion www.adb.org Paid-in capital subscription: $174.89 million Annual Report Paul Dominguez is the Director and Shahid Mahmood is the Alternate Director representing the www.adb.org/documents/series/adb-annual- Philippines on the ADB Board of Directors. reports

Kelly Bird is the ADB Country Director for the Philippines. The Philippines Country Office was Asian Development Outlook opened in 2001 and provides the primary operational link for activities between ADB and the www.adb.org/publications/series/asian- government, the private sector, civil society stakeholders, and development partners. The country development-outlook office engages in policy dialogue, country partnership strategy development and programming, and portfolio management, while also acting as a knowledge base on development issues in the Philippines. ADB Data Library data.adb.org The Philippines government agency handling ADB affairs is the Department of Finance. About the Asian Development Bank ADB is a multilateral development bank owned by 68 members, 49 from the region and 19 from other parts of the world. ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. In 2019, lending volume was $20.47 billion (133 projects), with technical assistance at $237.31 million (252 projects) and grant-financed projects at $844.07 million (31 projects). In addition, $11.86 billion was generated for sovereign and nonsovereign cofinancing in the form of loans and grants, B loans, risk transfer arrangements, guarantee cofinancing, parallel loans, parallel equity, and cofinancing for transactions under ADB’s Trade Finance Program. From 1 January 2015 to 31 December 2019, ADB’s annual lending volume averaged $17.41 billion. In addition, investment grants and technical assistance funded by ADB and Special Funds resources averaged $702.60 million and $202.27 million over the same period. As of 31 December 2019, the cumulative totals excluding cofinancing were $296.28 billion in loans for 3,221 projects in 44 countries, $10.23 billion in 409 grants, and $4.72 billion in technical assistance grants, including regional technical assistance grants.

Notes: ADB welcomed Niue as its 68th member in March 2019. Figures are estimated by ADB unless otherwise stated. “$” refers to United States dollars. Data are updated as of 31 December 2019 unless otherwise indicated.