ASIAN DEVELOPMENT BANK MEMBER FACT SHEET

Philippines: 2017 Committed Loans, Grants, and Technical Assistance ADB’s support to the Philippines focuses on three ($ million) main pillars: accelerating infrastructure investments, Loans Technical promoting local economic development, Sovereign Nonsovereign Assistance Grants Total 700.00 - 15.30 - 715.30 and increasing social investments. – = nil.

Notes: Commitment is the fi nancing 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 cofi nancing. PHILIPPINES

The Philippines is one of Southeast annual lending of $767 million over Philippines: Cumulative Lending, Grant, Asia’s recent economic success stories, the past 10 years. ADB’s cumulative a, b, c and Technical Assistance Commitments with strong growth accompanied assistance to the Philippines has Total Amount by moderate infl ation, sound fi scal reached 213 public sector loans ($16.85 Sector No. ($ million)d %d performance, and a strong external billion) and 28 grants ($82.6 million). Agriculture, Natural Resources, payments position. The country’s gross Cumulative disbursements to the and Rural Development 170 2,074.07 11.57 domestic product grew by an average Education 42 1,747.13 9.75 Philippines for lending and grants of 6.4% a year during 2010–2017, Energy 75 3,412.06 19.04 fi nanced by ordinary capital resources compared with average annual growth Finance 73 2,042.68 11.40 (OCR), the Asian Development Fund, of about 5% over the previous decade. Health 26 373.53 2.08 and other special funds amount to Industry and Trade 33 592.22 3.30 The Government of the Philippines $13.94 billion. Multisector 21 334.07 1.86 Public Sector Management 80 4,419.45 24.66 aims to lay a foundation for sustained Transport 76 1,668.07 9.31 strong and inclusive growth, a high- ADB-SUPPORTED PROJECTS Water and Other Urban trust society, and a globally competitive AND PROGRAMS Infrastructure and Services 74 1,258.04 7.02 knowledge economy. Among the Total 670 17,921.31 100.00 economic priorities identifi ed by the ADB’s active lending portfolio for the a Grants and technical assistance include ADB-administered current administration, which took Philippines totals $2.3 billion. About cofi nancing. b Includes sovereign and nonsovereign loans and technical assistance. offi ce in June 2016, are addressing 64% of the active loans carry an c Using primary sector in reporting of commitments. underinvestment in infrastructure and education component. Public sector d Numbers may not sum precisely because of rounding. reducing income inequality and regional management comprises 11% while growth disparities. agriculture, natural resources and rural Philippines: Ordinary Capital Resources Since 1966, the Asian Development Nonsovereign Commitments by Product, Bank (ADB) has been a strong partner 2007–2017 in the development of the Philippines, No. of Transactions Signed 6 its host country. ADB is one of the Amount ($ million) country’s largest sources of offi cial Loans 435.55 development assistance, with average Equity Investments 25.00 Guarantees 211.67 Total 671.22 development account for 10%. Two other loans approved in 2017 are capacity building for the government’s The remainder of loans went to water, also supporting the government’s “Build, “Build, Build, Build” program; further transport, and energy projects and Build, Build” infrastructure development reforms in the domestic bond market; multisector programs. program. A technical assistance loan and post-confl ict support for Marawi of $100 million for the Infrastructure City and other aff ected areas. In December 2017, ADB and the Preparation and Innovation Facility government agreed on the country will support project preparatory work operations business plan 2018-2020 for for the government’s fl agship projects, NONSOVEREIGN OPERATIONS the Philippines. The plan marks a shift while the $300 million Encouraging in the portfolio’s focus toward strong As a catalyst for private investments, ADB Investment through Capital Markets support for infrastructure investment. provides direct fi nancial assistance to Reform Program is a policy-based loan nonsovereign public sector and private In 2017, ADB approved four loans that provides incentives and capacity sector transactions in the form of direct totaling $1.08 billion, of which the development for the government to loans, equity investments, guarantees, biggest was the $380 million Improving meet its target capital market reforms B loans, and trade fi nance. In 2017, $3.17 Growth Corridors in Mindanao and attract fi nancing for infrastructure billion of fi nancing for 29 nonsovereign Road Sector Project. The project will development. transactions funded by ADB’s own upgrade and rehabilitate an estimated To assist Filipino youth in fi nding resources were approved. Total 280 kilometer of national primary, gainful employment, ADB approved a commitments achieved in 2017 amounted secondary, and tertiary roads as well policy-based loan of $300 million for to $2.29 billion for 27 transactions. Both as bridges in Mindanao, strengthening the Facilitating Youth School-to-Work OCR approvals and commitments were at economic and physical linkages for the Transition Program. record highs in 2017. Around $5.9 billion island’s 20 million people. Mindanao of cofi nancing from commercial and plays a key role in the Philippines’ In 2017, ADB also committed a total of offi cial sources were mobilized. Total OCR participation in regional cooperation $15.30 million in technical assistance outstanding balances and commitments initiatives, and improving its roads will for the nationwide rollout of Jobstart of ADB’s nonsovereign transactions help develop agribusiness, ecotourism, Philippines; the preparation of a project as of 31 December 2017 amounted to and logistics networks, contributing to monitoring system and institutional $10.9 billion. the development of the Greater Sulu Sulawesi Corridor.

Philippines: Project Success Rates Philippines: Portfolio Performance Quality Indicators No. of Independently for Sovereign Lending and Grants, 2016–2017 Success Rate Evaluated Projects No. of Ongoing Loansa (as of 31 Dec 2017) 12 Year (%) and Programs 2016 ($ million) 2017 ($ million) 2007 100.0 1 Contract Awardsb, c 232.13 246.57 2008 20.0 5 Disbursementsb 709.95 472.89 2009 50.0 2 No. of Ongoing Grantsa (as of 31 Dec 2017) 1 2010 60.0 5 2016 ($ million) 2017 ($ million) 2011 40.0 5 Contract Awardsb, c –– 2012 50.0 2 Disbursementsb, d –– 2013 100.0 1 Actual Problem Projects (%) (as of 31 Dec 2017) 20 2014 0.0 1 – = nil. 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. Total 50.0 28 d Includes only Asian Development Fund and other ADB special funds. Note: “Year” refers to the circulation year of the project completion report (PCR). Compared with the numbers in previous years’ Fact Sheet, the success rate reported here is based on the ratings from validated PCRs and independently evaluated performance evaluation reports only and does not include self-evaluations. With small sample size, the success rate does not necessarily represent country operations performance. Source: PCR validation reports and project/program performance evaluation reports ratings database as of 31 December 2017.

Philippines: Projects Cofi nanced, 1 January 2013– Philippines: Share of Procurement Contracts for Loan, 31 December 2017 Grant, and Technical Assistance Projects Cofi nancing No. of Projects Amount ($ million) Cumulative Projectsa 12 2,054.18 2016 2017 (as of 31 Dec 2017) Amount % of Amount % of Amount % of Grants 5 34.50 Item ($ million) Total ($ million) Total ($ million) Total Offi cial loans 7 1,379.00 Goods, Works, and Commercial cofi nancing 3 640.68 Related Services 712.23 6.32 497.82 4.77 9,757.38 5.77 Technical Assistance Grants 17 35.31 Consulting Services 30.18 4.81 24.44 3.29 472.48 3.93 a A project with more than one source of cofi nancing is counted once. Total Procurement 742.41 6.24 522.26 4.68 10,229.86 5.65 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 2013–31 December 2017 Grant, and Technical Assistance Projects, 1 January 2013– Contract Amount 31 December 2017 Contractor/Supplier Sector ($ million) Contract Amount R.D. Interior Junior Construction & Consultant Sector ($ million) Hebei Road and Bridge Group Pacifi c Rim Innovation and Co. Ltd. (JV) TRA 17.74 Management Exponents Inc. ANR, EDU, HLT 12.16 Alcatel-Lucent Philippines Inc. TRA 5.03 Renardet Ingenieurs Conseils S.A. TRA 9.44 Vicente T. Lao Construction ANR, TRA 5.03 Plan International Philippines PSM 7.48 R.D. Policarpio & Co. Inc. & Angel Lazaro & Associates TRA 5.97 Sunwest Construction (Jv) TRA 3.27 A.M. Oreta & Co. Inc. & LBC Development Strategists International Builders Corp. (Jv) TRA 2.73 International Consulting Inc. EDU, IND 5.57 Others 2,306.17 Individual Consultants 58.13 Total 2,339.97 Others 23.37 ANR = agriculture, natural resources, and rural development; TRA = transport. Total 122.12 ANR = agriculture, natural resources, and rural development; EDU = education; HLT = health; IND = industry and trade; PSM = public sector management; TRA = transport.

COFINANCING (4Ps). Among the country’s bilateral Consulting Services partners, the governments of Australia ADB’s procurement contracts in Asia Cofi nancing operations enable ADB’s and Canada are active cofi nanciers in and the Pacifi c for consulting services fi nancing partners, governments or various programs, including advancing under loan, grant, and technical their agencies, multilateral fi nancing public–private partnership reforms and assistance operations totaled $627.79 institutions, and commercial youth employment in the Philippines. million in 2016 and $741.84 million in organizations, to participate in fi nancing 2017. Cumulative procurement since ADB projects. The additional funds are ADB continues to participate in 1966 was $12.02 billion covering 55,420 provided in the form of offi cial loans policy dialogue and coordinates with contracts. and grants, technical assistance, other government agencies to discuss concessional fi nancing, and commercial development issues such as the In the Philippines, 6,850 contracts cofi nancing such as B loans, risk transfer rehabilitation and reconstruction work worth $472.48 million were awarded to arrangements, parallel loans and equity, in confl ict-aff ected areas in Marawi consultants since 1966. guarantee cofi nancing, and cofi nancing City and nearby townships, as well as for transactions under ADB’s Trade directions of development assistance in OPERATIONAL CHALLENGES Finance Program and Supply Chain Mindanao. Finance Program. The government has embarked PROCUREMENT on a massive “Build, Build, Build” From 1972 to the end of 2017, infrastructure development program cumulative direct value-added offi cial Each year, ADB provides loans, grants, worth $160 billion–180 billion from 2017 cofi nancing commitments for the and technical assistance to fund to 2022. The program has gathered Philippines amounted to $4.00 billion projects and activities in its developing momentum, with public spending on for 55 investment projects, and $95.82 member countries; and several billion infrastructure estimated to rise from million for 66 technical assistance dollars in contracts to procure goods, 4.5% of GDP in 2016 to 7.3% by 2022. projects. Cumulative direct value- works, and consulting services. Most Given the wide array of infrastructure added commercial cofi nancing for contracts are awarded on the basis of projects under the program, government the Philippines amounted to $980.24 international competition, which is agencies’ capacity to roll out such large million for 10 investment projects. open to fi rms and individuals from any and complex plans will need to be A summary of projects with cofi nancing ADB member, regional or nonregional. further strengthened. ADB is supporting from 1 January 2013 to 31 December the government through loans, grants, 2017 is available at www.adb.org/ Share of ADB’s Procurement and technical assistance. ADB is working countries/philippines/cofi nancing. Contracts closely with the government to enhance the technical and institutional capacity Goods, Works, and Related Services PARTNERSHIPS of national and local agencies and staff ; ADB’s procurement contracts in Asia improve inter-agency coordination; ADB continues to collaborate with and the Pacifi c for goods, works, and and strengthen partnerships between key development partners of the related services under loan and grant the government, private sector, and government, particularly in the areas operations totaled $11.28 billion in 2016 development partners. of infrastructure, fi nance, public and $10.43 billion in 2017. Cumulative sector management, and community procurement since 1966 was $169.12 FUTURE DIRECTIONS development. ADB and the World billion covering 211,316 contracts. The forthcoming ADB country Bank are partners in supporting the In the Philippines, 18,537 contracts partnership strategy, 2018–2023 for government’s National Community- worth $9.76 billion were awarded to the Philippines will focus on three main Driven Development Program and the contractors and suppliers since 1966. conditional cash-transfer program called pillars: (i) accelerating infrastructure Pantawid Pamilyang Pilipino Program investments, (ii) promoting local development in Visayas and Mindanao, The strategy also includes cross- economic development, and (iii) while continuing to assist national cutting support to build inclusive increasing social investments. programs. In addition to building and and sustainable growth by promoting rehabilitating national roads in Western private sector participation, gender The strategy is closely aligned with the Mindanao and modernizing public equality, climate change adaptation and Long-Term Vision of the Philippines transport in Davao City, investments mitigation measures integrated into Towards 2040 (AmBisyon Natin 2040) to further develop economic corridors local government systems, sustainable and the Philippine Development Plan are being prepared to focus initially in environmental management, and the 2017–2022. To promote inclusive South Central Mindanao. use of knowledge and innovation in growth, the strategy supports ADB operations.

CONTACTS Philippines Country Offi ce 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 683 1030 [email protected] www.adb.org/philippines

ADB Headquarters 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444

Department of Finance 6th Floor, Department of Finance Building ABOUT THE PHILIPPINES AND ADB Roxas Boulevard corner Pablo Ocampo Street Metro Manila, Philippines ADB Membership Tel +63 2 523 9219 Joined 1966 Fax +63 2 526 8474 Shareholding and Voting Power Number of shares held: 252,912 (2.383% of total shares) Useful ADB websites Votes: 292,519 (2.205% of total membership, Asian Development Bank 3.384% of total regional membership) Overall capital subscription: $3.60 billion www.adb.org Paid-in capital subscription: $180.11 million Asian Development Outlook Shahid Mahmood is the Director and Paul Dominguez is the Alternate Director representing the www.adb.org/publications/series/asian- Philippines on the ADB Board of Directors. development-outlook

Kelly Bird is the ADB Country Director for the Philippines. The Philippines Country Offi ce was Annual Report opened in 2001 and provides the primary operational link for activities between ADB and the www.adb.org/documents/series/adb-annual- government, the private sector, civil society stakeholders, and development partners. The country reports offi ce 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. Depository Libraries www.adb.org/publications/depositories The Philippine government agency handling ADB aff airs is the Department of Finance. ABOUT THE ASIAN DEVELOPMENT BANK To access a complete list of development ADB is a multilateral development bank owned by 67 members, 48 from the region and 19 from and economic indicators, visit: 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. Statistics and Databases In 2017, lending volume was $18.72 billion (111 projects), with technical assistance at $200.53 million www.adb.org/data/statistics (246 projects) and grant-fi nanced projects at $597.49 million (24 projects). In addition, $11.92 billion was generated in direct value-added cofi nancing in the form of offi cial loans and grants, other concessional cofi nancing, and commercial cofi nancing such as B loans, risk transfer arrangements, guarantee cofi nancing, parallel loans, parallel equity, and cofi nancing for transactions under ADB’s Trade Finance Program. From 1 January 2013 to 31 December 2017, ADB’s annual lending volume averaged $14.55 billion. In addition, investment grants and technical assistance funded by ADB and Special Funds resources averaged $617.74 million and $166.28 million over the same period. As of 31 December 2017, the cumulative totals excluding cofi nancing were $255.14 billion in loans for 2,955 projects in 44 countries, $8.36 billion in 328 grants, and $4.27 billion in technical assistance grants, including regional technical assistance grants.

In this publication, “$” refers to US dollars. Figures are estimated by ADB unless otherwise cited. Data are as of 31 December 2017 unless otherwise indicated. Fact sheets are updated annually in April.