ASIAN DEVELOPMENT BANK MEMBER FACT SHEET

Philippines: 2015 Approved Loans, Grants, and Technical Assistance ADB has been a strong development partner ($ million) Loans of the Philippines, its host country, with average Technical Sovereign Nonsovereign Assistance Grants Total annual lending of $745 million in the last 10 years. 600.00 60.64 5.35 – 665.98 – = nil. Note: Grants and technical assistance include cofinancing.

Philippines: Cumulative Lending, Grant, and Technical Assistance Approvalsa, b Philippines Total Amount c c Sector No. ($ million) % The Philippines is among the fastest- and building on the successes of public– Agriculture, Natural Resources, and Rural Development 171 2,077.33 12.68 growing economies in Southeast Asia, private partnerships (PPPs). Developing Education 37 968.84 5.92 with upgrades to sovereign investment the finance sector is an emerging Energy 75 3,432.06 20.96 ratings confirming the improvements priority, particularly the development of Finance 69 1,736.62 10.60 in the country’s macroeconomic capital markets, nonbank finance, and Health 25 376.63 2.30 fundamentals. inclusive finance. Industry and Trade 33 596.22 3.64 Multisector 22 705.20 4.31 The Government of the Philippines Cumulative disbursements to the Public Sector Management 77 3,849.76 23.51 has defined its development objectives Philippines for lending and grants Transport 74 1,560.05 9.53 as being driving rapid but inclusive financed by ordinary capital resources, Water and Other Urban economic growth, accelerating the Asian Development Fund, and other Infrastructure and Services 70 1,074.31 6.56 Total 653 16,377.02 100.00 employment on a massive scale, and special funds amount to $12.65 billion. reducing poverty. a Grants and technical assistance include cofinancing. b Includes sovereign and nonsovereign loans and technical assistance. Since 1966, the Asian Development ADB-SUPPORTED PROJECTS c Total may not add up because of rounding. Bank (ADB) has been a strong partner AND PROGRAMS in the development of the Philippines, To meet the large infrastructure needs its host country. ADB is the country’s of the Philippines, ADB has been Philippines: Cumulative Nonsovereign third-largest source of official supporting PPPs since 2011. ADB, Financing by Product development assistance, with average through a cofinancing arrangement N o. of Transactions 30 annual lending of $745 million in the last Amount ($ million) 10 years. The ADB country partnership Loans 730.96 strategy, 2011–2016 for the Philippines Equity Investments 64.85 focuses on improving the investment Guarantees 199.57 B Loans 113.58 climate, more effectively delivering Total 1,108.95 social services, and minimizing disaster risks. Emphasis is also given to strengthening governance, developing infrastructure through public channels, with the governments of Australia engagement in national flagship sector transactions in the form of direct and Canada, had provided a total of programs, such as in education, social loans, equity investments, guarantees, $28.2 million in technical assistance protection, and local government. B loans, and trade finance. Since its since 2011 to strengthen PPP capacities inception, ADB has approved $1.1 billion in Full implementation of the ADB program in the country. financing for 30 private sector transactions to assist communities affected by in the Philippines. Total outstanding In 2015, ADB approved $300 million Typhoon Yolanda (internationally called balances and commitments of ADB’s for its first policy-based operation Haiyan) began in 2014. As of April 2015, private sector transactions in the country, fully focused on PPP reforms in the ADB had fully disbursed the $500 million as of 31 December 2015, amounted to Philippines. The program will strengthen that was approved for its Emergency $150.39 million, representing 1.81% of mechanisms to finance PPPs, improve Assistance for Relief and Recovery from ADB’s total nonsovereign portfolio. implementation of PPP projects, Yolanda. Efforts are now focused on and strengthen legal and regulatory reconstruction, particularly the restoration frameworks. To complement its support of infrastructure, livelihoods, and social COFINANCING to the government for the PPP program, services. The KALAHI-CIDSS National Cofinancing operations enable ADB’s ADB approved a further $300 million Community-Driven Development financing partners, governments or as part of a phased approach to deepen Project ($372.1 million) and the Japan their agencies, multilateral financing capital markets and nonbank finance. Fund for Poverty Reduction Emergency institutions, and commercial This will increase the availability of Assistance and Early Recovery for Poor organizations, to participate in financing long-term private finance to fund Municipalities Affected by Typhoon ADB projects. The additional funds are infrastructure investments. Yolanda ($20 million) are contributing provided in the form of official loans strongly to this reconstruction. and grants, technical assistance, other ADB approved a total of $6.2 million concessional cofinancing, and commercial in technical assistance to prepare for NONSOVEREIGN OPERATIONS cofinancing such as B loans, risk transfer future projects in Mindanao, support arrangements, parallel loans and equity, the nationwide rollout of a successful As a catalyst for private investments, ADB guarantee cofinancing, and cofinancing youth employment program (established provides direct financial assistance to for transactions under ADB’s Trade with the support of ADB), and deepen nonsovereign public sector and private Finance Program.

Philippines: Project Success Rates Philippines: Portfolio Performance Quality Indicators No. of Independently for Sovereign Lending and Grants, 2014–2015 Success Rate Evaluated Projects N o. of Ongoing Loans (as of 31 Dec 2015) 11 Year (%) and Programs 2014 ($ million) 2015 ($ million) 2005 100.0 1 Contract Awards/Commitmentsa, b 409.45 525.70 2007 33.3 6 Disbursementsa 683.52 928.32 2008 - 1 No. of Ongoing Grants (as of 31 Dec 2015)c 2 2009 80.0 5 2014 ($ million) 2015 ($ million) 2010 20.0 5 Contract Awards/Commitmentsa, b 3.00 – 2011 50.0 2 Disbursementsa 0.07 – 2012 100.0 1 Actual Problem Projects (%) 17 2013 50.0 2 – = nil. 2014 - 1 Note: Totals may not add up because of rounding. 2015 100.0 1 a Includes closed loans/grants that had contract awards or disbursements during the year. Total 48.0 25 b Excludes policy-based lending/grants. c – = nil. Includes only Asian Development Fund and other ADB special funds. Note: “Year” refers to the circulation year of the project completion report (PCR). The success rates reported here are based on the ratings from validated PCRs and independently evaluated performance evaluation reports only and do 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 2015.

Philippines: Projects Cofinanced, 1 January 2011– Philippines: Share of Procurement Contracts for Loan, 31 December 2015 Grant, and Technical Assistance Projects Cofinancing No. of Projects Amount ($ million) Cumulative Projectsa 12 1,443.80 2014 2015 (as of 31 Dec 2015) Amount % of Amount % of Amount % of Grants 6 32.50 Item ($ million) Total ($ million) Total ($ million) Total Official loans 6 879.00 Goods, Works, and Commercial cofinancing 2 532.30 Related Services 106.24 1.26 332.96 2.99 5,631.07 3.86 Technical Assistance Grants 25 59.11 Consulting Services 27.57 4.96 18.63 2.92 419.66 3.94 a A project with more than one source of cofinancing is counted once. Total Procurement 133.82 1.49 351.59 2.99 6,050.73 3.86 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 2011–31 December 2015 Grant, and Technical Assistance Projects, 1 January 2011– Contract Amount 31 December 2015 Contractor/Supplier Sector ($ million) Contract Amount R.D. Interior Junior Construction TRA 24.63 Consultant Sector ($ million) Fumaco Inc. ENE 11.18 Pacific Rim Innovation & Alcatel-Lucent Philippines, Inc. TRA 5.08 Management Exponents, Inc. ANR, EDU, HLT 16.10 Vicente T. Lao Construction ANR, TRA 4.20 Angel Lazaro & Associates TRA 10.09 R.D. Policarpio & Co. Inc. TRA 3.32 Plan International Inc. MUL 8.00 Others 988.73 Lahmeyer Idp Consult, Inc. ANR, WUS 7.29 Total 1,037.15 Renardet S.A Consulting ANR = Agriculture, Natural Resources, and Rural Development; ENE = Energy; TRA = Transport Engineers TRA 5.60 Individual Consultants 50.07 Others 32.41 Total 129.56 ANR = Agriculture, Natural Resources, and Rural Development; EDU = Education; HLT = Health; MUL = Multisector; TRA = Transport; WUS = Water and Other Urban Infrastructure and Services.

From 1970 to the end of 2015, cumulative rehabilitation and reconstruction work period, 17,541 contracts were awarded direct value-added (DVA) official in areas hit by Typhoon Yolanda, as well to contractors and suppliers from the cofinancing for the Philippines amounted as directions of development assistance Philippines worth $5.63 billion. to $3.4 billion for 53 investment projects, in Mindanao. and $87.3 million for 64 technical assistance Consulting Services From 1 January 1966 to 31 December projects. Cumulative DVA commercial PROCUREMENT cofinancing for the Philippines amounted to 2015, consultants were involved in $833.9 million for nine investment projects. Share of ADB’s Procurement 48,767 contracts for consulting services Contracts under ADB loan, grant, and technical A summary of projects with cofinancing assistance projects worth $10.64 billion. from 1 January 2011 to 31 December Each year, ADB provides loans, grants, and technical assistance to fund During the same period, 5,921 contracts 2015 is available at www.adb.org/ were awarded to consultants from the countries/philippines/cofinancing projects and activities in its developing member countries, and several billion Philippines worth $419.66 million. dollars in contracts to procure goods, PARTNERSHIPS works, and consulting services. Most OPERATIONAL CHALLENGES The development assistance needs contracts were awarded on the basis As of 31 December 2015, ADB’s of the Philippines are significant and of international competition, which is cumulative assistance to the diverse. ADB has collaborated with open to firms and individuals from any Philippines has reached 206 public the Japan International Cooperation ADB member, regional or nonregional. sector loans ($15.3 billion) and Agency (JICA) and the World Bank, Procurement contracts for goods, 27 grants ($75.6 million). The particularly in the areas of infrastructure, works, and related services under majority of these projects were in the finance, public sector management, loan and grant operations totaled sectors of education; public sector and community development. ADB $8.4 billion in 2014 and $11.12 billion in management; industry and trade; energy; is in partnership with the World Bank 2015. Cumulative procurement, as of agriculture, natural resources, and rural to support the government’s National 31 December 2015, was $145.92 billion. development; and transport. Community-Driven Development Program. ADB has collaborated Procurement contracts for consulting The ADB loan portfolio consists of both with JICA to encourage private services under loan, grant, and project and program loans, including the sector participation in infrastructure technical assistance operations first results-based loan for the education development and deepen capital totaled $556.05 million in 2014 and sector in the Philippines. Increasing use markets and nonbank finance in $637.4 million in 2015. Cumulative of results-based lending is expected the Philippines. procurement, as of 31 December 2015, to identify investment projects that was $10.64 billion. make better use of country systems to As mentioned, among the country’s increase implementation efficiency. The bilateral partners, the governments Goods, Works, and Related Services Client Portal for Disbursements—an of Australia and Canada are active From 1 January 1966 to 31 December online system that is expected to speed cofinanciers of programs to advance PPP 2015, contractors and suppliers were up the preparation and submission of reforms in the Philippines. involved in 199,625 contracts for withdrawal applications, and reduce ADB continues to participate in policy goods, works, and related services transaction costs—is being adopted on a dialogue with government agencies and under ADB loan and grant projects pilot basis in two key executing agencies other development partners, discussing worth $145.92 billion. During the same in the Philippines. FUTURE DIRECTIONS cash transfer program. ADB will improve the quality of 500 kilometers further support strengthening of local of national roads. In Metro Manila, Future ADB assistance to the Philippines governance systems and institutional ADB will help ensure sustainable water will be based on a holistic program- capacities. supply, by financing the rehabilitation oriented approach. This will increase the and construction of part of a water ADB’s first policy-based operation predictability of ADB resource allocations transmission system from the Angat focused on youth employment in the and government disbursements, reservoir. strengthen synergy across sectors Philippines is expected for approval and operations, and provide financing in 2016. This complements the ADB ADB is also undertaking analytical work flexibility to suit the assistance required. results-based lending program for to prepare the next country partnership senior high schools and builds on a strategy for the Philippines. In 2016, ADB will provide additional successful technical assistance for financing to support the nationwide JobStart Philippines. In Mindanao, expansion of the government’s conditional ADB will finance a road project to

C ontACTS Philippines Country Office 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 About THE Philippines and ADB Fax +63 2 636 2444

ADB Membership Department of Finance Joined 1966 6th Floor, Department of Finance Building Roxas Boulevard corner Pablo Ocampo Street Shareholding and Voting Power Metro Manila, Philippines Number of shares held: 252,912 (2.385% of total shares) Tel +63 2 523 6051 Votes: 292,476 (2.207% of total membership, Fax +63 2 521 2948 3.384% of total regional membership) Overall capital subscription: $3.51 billion Useful ADB websites Paid-in capital subscription: $175.40 million Asian Development Bank Gaudencio Hernandez, Jr. is the Director and Muhammad Sami Saeed is the Alternate Director www.adb.org representing the Philippines on the ADB Board of Directors. Asian Development Outlook Richard Bolt is the ADB Country Director for the Philippines. The Philippines Country Office www.adb.org/publications/series/asian- was opened in 2001 and provides the primary operational link for activities between ADB and the development-outlook government, the private sector, civil society stakeholders, and development partners. The country office engages in policy dialogue, country partnership strategy development and programming, Annual Report and portfolio management, while also acting as a knowledge base on development issues www.adb.org/documents/series/adb-annual- in the Philippines. reports The Philippine government agency handling ADB affairs is the Department of Finance. Depository Libraries About the Asian Development Bank www.adb.org/publications/depositories ADB is a multilateral development bank owned by 67 members, 48 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 (TA). In To access a complete list of development 2015, lending volume was $15.45 billion (107 projects), with TA at $141.30 million (199 projects) and and economic indicators, visit: grant-financed projects at $365.15 million (17 projects). In addition, $10.74 billion was generated in direct value-added cofinancing in the form of official loans and grants, other concessional Statistics and Databases cofinancing, and commercial cofinancing such as B loans, risk transfer arrangements, guarantee www.adb.org/data/statistics cofinancing, parallel loans, parallel equity, and cofinancing for transactions under ADB’s Trade Finance Program. From 1 January 2011 to 31 December 2015, ADB’s annual lending volume averaged $12.93 billion. In addition, investment grants and TA funded by ADB and Special Funds resources averaged $580.66 million and $150.23 million in TA over the same period. As of 31 December 2015, the cumulative totals excluding cofinancing were $231.53 billion in loans for 2,822 projects in 44 countries, $7.23 billion in 274 grants, and $3.90 billion in TA grants, including regional TA grants.

In this publication, “$” refers to US dollars. Figures are estimated by ADB unless otherwise cited. Data are as of 31 December 2015 unless otherwise indicated. Fact sheets are updated annually in April.