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Asian Development Bank and Philippines: Fact Sheet

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Asian Development Bank and Philippines: Fact Sheet ASIAN DEVELOPMENT BANK MEMBER FACT SHEET Philippines: 2019 Committed Loans, Grants, and Technical Assistance ADB’s partnership strategy for the Philippines ($ 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 Manila 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.
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