ASIAN DEVELOPMENT BANK MEMBER FACT SHEET

Philippines: 2020 Loans, Grants, Equity Investments, Technical Assistance, and Trade and Supply Chain Finance and ADB’s country partnership strategy for the , Microfinance Program Commitments ($ million)a 2018–2023 supports infrastructure investment, Product Type Sovereign Nonsovereign Total local economic development, and increased social Loans 4,205.35 – 4,205.35 Grants 3.00 – 3.00 investments in the bottom 40% of the population. Technical Assistanceb 27.28 0.63 27.91 Trade and Supply Chain – 0.14 0.14 Finance and Microfinancec Total 4,235.63 0.77 4,236.40 – = nil, DMC = developing member country, TA = technical assistance. Notes: Commitment is the financing approved by ADB’s Board of Directors or Management for which the legal agreement has been signed by Philippines the borrower, recipient, or the investee company and ADB. Grants and TA include ADB-administered cofinancing. a Numbers may not sum precisely because of rounding. b Financing for TA projects with regional coverage is distributed to Prior to the coronavirus disease ADB-SUPPORTED PROJECTS their specific DMCs where breakdown is available. c ADB-financed commitments from nonsovereign revolving (COVID-19) pandemic, the Philippines’ AND PROGRAMS programs of which $136,860 is short term. economic growth had averaged 6.4% annually from 2010 to 2019, with private ADB assisted the government in Philippines: Cumulative Loans, Grants, consumption, investment, and services its immediate COVID-19 response Equity Investments, Technical Assistance, as major growth drivers. In 2020, measures, particularly on programs and Trade and Supply Chain Finance and however, gross domestic product fell for increased social protection, health a, b, c, d Microfinance Program Commitments by 9.5% and the country registered its sector support, and assistance to micro, Total % COVID-19 small, and medium-sized businesses. Amount of Total Response first recession since the Asian Financial Sector No. ($ million)e Amounte ($ million)e Crisis in 1998. In 2020, ADB delivered a total of over Projects and 711 26,311.56 99.65 2,393.01 Technical Assistance The Asian Development Bank (ADB), $1.8 billion in loans for the Philippines’ Agriculture, Natural 172 2,478.72 9.39 50.00 Resources, and which is headquartered in the Philippines, COVID-19 response. This included Rural Development is one of the country’s largest sources $1.5 billion in budget support under Education 44 2,554.76 9.68 1.83 Energy 76 3,414.06 12.93 – of official development assistance, with the COVID-19 Active Response Finance 84 3,775.88 14.30 500.12 and Expenditure Support Program, Health 28 504.49 1.91 130.90 average annual lending of $1.9 billion over Industry and Trade 33 592.22 2.24 – the 5 years to 2020. The bank’s support is $200 million in additional financing for Information and – 0.33 0.00 – the Social Protection Support Program, Communication aligned with the Philippine Development Technology Plan 2017–2022 and the Government of and $125 million through the Health Multisector 21 334.34 1.27 – System Enhancement to Address and Public Sector Management 95 7,593.21 28.76 1,710.06 the Philippines’ Long-Term Vision for the Transport 83 3,678.28 13.93 – Philippines (AmBisyon Natin 2040). Limit COVID-19 Project, which will Water and Other 75 1,385.26 5.25 0.11 help raise the government’s capacity Urban Infrastructure Since 1966, ADB has committed public and Services Trade and Supply Chain 45 91.51 0.35 – sector loans, grants, and technical Finance and Microfinancef Finance 25 45.75 0.17 – assistance totaling $26.4 billion to the Industry and Trade 20 45.75 0.17 – Philippines. Cumulative loan and grant Total 756 26,403.06 100.00 2,393.01 disbursements to the Philippines amount – = nil, 0.00 = less than 0.005%, COVID-19 = coronavirus disease, DMC = developing member country, TA = technical assistance. to $20.12 billion. These were financed by a Grants and TA include ADB-administered cofinancing. regular and concessional ordinary capital b Includes sovereign and nonsovereign loans and technical assistance. resources, and other special funds. c Using primary sector in reporting of commitments. d Financing for TA projects with regional coverage is distributed to their specific DMCs where breakdown is available. e Numbers may not sum precisely because of rounding. f ADB-financed commitments from nonsovereign revolving programs of which $91.42 million is short term. Updated in July 2021 to address viral outbreaks and provide to advance local governance reform, PARTNERSHIPS universal health care. construct elevated pedestrian walkways in the capital’s main thoroughfare, and Strong development partner ADB also provided more than $8 million secure Metro ’s water supply were coordination in 2020 allowed in grants and technical assistance in also part of the 2020 lending program. immediate delivery of assistance for the early months of the pandemic, urgent COVID-19 response. ADB’s including the delivery of food baskets $1.5 billion support under the COVID-19 to 162,000 vulnerable households in NONSOVEREIGN OPERATIONS Active Response and Expenditure . The funds also helped As a catalyst for private investments, Support Program was complemented by procure equipment and supplies to ADB provides financial assistance to $1.4 billion from the Asian Infrastructure build a new COVID-19 laboratory nonsovereign projects and financial Investment Bank and the Japan in Pampanga province, helping raise intermediaries. Total commitments International Cooperation Agency. COVID-19 testing capacity for in loans and equity investments from vulnerable communities in ADB and the Japan International ADB’s own funds in 2020 amounted northern Philippines. Cooperation Agency have maintained to $1.4 billion for 38 transactions in their partnership in supporting priority A $500 million loan was committed economic and social infrastructure, projects under the “Build, Build, Build” in 2020 to expand ADB’s long-term finance sector, and agribusiness. (BBB) infrastructure program, while support for the country’s conditional ADB also actively mobilizes the World Bank is ADB’s partner in cash transfer program, which is helping cofinancing from commercial and supporting the government’s conditional millions of Filipino families send their concessional sources. In 2020, ADB cash transfer program. children to school and keep them mobilized $1.9 billion of long-term healthy. ADB also provided $500 million project cofinancing and $3.3 billion The governments of Australia, Canada, to allow the Philippines quick access of cofinancing through its Trade and France are active cofinanciers in to emergency financing in the event of and Supply Chain Finance Program various programs and projects, including disasters triggered by natural hazards or and Microfinance Program. Total public–private partnership reforms, public health emergencies. outstanding balances and commitments youth employment programs, local of nonsovereign transactions funded governance reforms, and flood risk Overall, ADB’s annual lending to the by ADB’s own resources stood at management projects. Philippines reached a record high of $14.3 billion as of 31 December 2020. $4.2 billion in 2020. This included ADB continues to participate in policy-based loans to support Total outstanding balances and policy dialogue and coordinates with infrastructure financing generated commitments of ADB’s nonsovereign government agencies on development by capital markets, expand transactions in the country as of issues, including approaches to deal financial inclusion, and raise the 31 December 2020 was $246.6 million with the socioeconomic impacts agriculture sector’s productivity and representing 2% of ADB’s total of COVID-19 and the direction of competitiveness. Project investments nonsovereign portfolio. development assistance in Mindanao.

Philippines: Evaluation Results for Sovereign Philippines: Ordinary Capital Resources and Nonsovereign Operations, 2011–2020 Nonsovereign Commitments by Product Total Number 2020 2016–2020 of Validated Evaluation Ratings Number of Transactions Signed – 2 and Evaluated Number of Transactions Signed (Programs) 1 8 Projects and Highly successful Less than Amount ($ million) Programs and successful successful Unsuccessful Loans – 67.72 Sovereign 18 10 7 1 Equity Investments – – Operations Guarantees – 168.15 Nonsovereign 8 6 1 1 Trade and Supply Chain Finance Program 0.14 0.94 Operations and Microfinance Program IED = Independent Evaluation Department. Total 0.14 236.81 Note: The figures indicate the number of sovereign and nonsovereign operations in the country – = nil. that have been validated or evaluated by the IED and their overall performance ratings. The coverage consists of all validated or evaluated project completion reports and extended annual review reports circulated by ADB within the 10-year period from 1 July 2010 to 30 June 2020. See evaluations related to the Philippines. Philippines: Portfolio Performance Quality Indicators Source: IED success rate database (as of 31 December 2020). for Sovereign Lending and Grants, 2019–2020 No. of Ongoing Loansa (as of 31 Dec 2020) 24 2019 ($ million) 2020 ($ million) Contract Awardsb, c 210.83 2,175.31 Philippines: Projects Cofinanced, Disbursementsb 951.51 4,440.03 1 January 2016–31 December 2020 No. of Ongoing Grantsa,d (as of 31 Dec 2020) – Cofinancing No. of Projects Amount ($ million) 2019 ($ million) 2020 ($ million) b, c, d Sovereign 19 4,525.26 Contract Awards – 3.00 Disbursementsb, d – 3.00 Loans 8 4,492.26 At Risk Projects (%) (as of 31 Dec 2020) 6 Grants 3 15.00 – = nil. Technical Assistance 8 18.00 a Based on commitments. Nonsovereign 3 177.27 b Includes closed loans/grants that had contract awards or disbursements during the year. c Excludes policy-based, results-based, and financial intermediation/credit loans and grants. d Includes only Asian Development Fund and other ADB special funds. Philippines: Share of Procurement Contracts for Loan, Grant, and Technical Assistance Projects Cumulative 2019 2020 (as of 31 Dec 2020) Amount % of Amount % of Amount % of Item ($ million) Total ($ million) Total ($ million) Total Goods, Works, and Related Services 829.28 5.85 4,647.20 20.39 16,084.79 7.43 Consulting Services 27.83 3.68 28.17 3.85 543.63 3.85 Total Procurement 857.11 5.74 4,675.37 19.88 16,628.41 7.21

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 2016–31 December 2020 Grant, and Technical Assistance Projects, 1 January 2016– Contract Amount 31 December 2020 Contractor/Supplier Sector ($ million) Contract Amount Acciona Construction Philippines TRA 563.46 Consultant Sector ($ million) Inc. Renardet S.A. Consulting TRA 13.68 MAC Builders and Fiat Construction TRA 10.89 Engineers Services (JV) Pacific Rim Innovation & ANR, EDU, HLT 12.16 Webb Fontaine Asia Inc. IND 6.77 Management Exponents Inc. C.B. Garay Philwide Builders WUS 1.80 International Technology EDU 8.63 TGV Builders Inc. and Netforce WUS 1.70 Management Corp. International (JV) Inno-Change International EDU, IND 3.13 Others 6,958.62 Consultants Inc. Total 7,543.25 Save the Children Philippines PSM 2.85 IND = industry and trade, JV = joint venture, TRA = transport, WUS = water and other urban Individual Consultants 66.27 infrastructure and services. Others 26.27 Total 132.99 ANR = agriculture, natural resources, and rural development; EDU = education; HLT = health; IND = industry and trade; PSM = public sector management; TRA = transport.

FINANCING PARTNERSHIPS A summary of projects with cofinancing Consulting Services from 1 January 2016 to 31 December ADB’s procurement contracts in Financing partnerships enable ADB’s 2020 is available at www.adb.org/ Asia and the Pacific for consulting financing partners, governments or countries/philippines/cofinancing. services under loan, grant, and their agencies, multilateral financing technical assistance operations institutions, and commercial totaled $756.72 million in 2019 and organizations to participate in financing PROCUREMENT $732.11 million in 2020. Cumulative ADB projects. The additional funds Each year, ADB provides loans, grants, procurement since 1966 has been are provided in the form of loans and and technical assistance to fund $14.13 billion covering 67,086 contracts. grants, technical assistance, and other projects and activities in its developing nonsovereign cofinancing such as For consultants from the Philippines, member countries and several billion B loans, risk transfer arrangements, 8,510 contracts worth $543.63 million dollars in contracts to procure goods, parallel loans and equity, guarantee have been awarded since 1966. works, and consulting services. Most cofinancing, and cofinancing for contracts are awarded on the basis of transactions under ADB’s Trade and international competition, which is OPERATIONAL CHALLENGES Supply Chain Finance Program and open to firms and individuals from all Microfinance Program. ADB’s annual lending to the Philippines ADB members. has increased in recent years, mainly due ADB began cofinancing operations to the bank’s support for the government’s in the Philippines in 1972. Since then, Share of ADB’s Procurement BBB infrastructure program. sovereign cofinancing commitments Contracts for the Philippines have amounted to Government spending on infrastructure $7.91 billion for 62 investment projects Goods, Works, and Related Services reached nearly 5% of gross domestic and $104.19 million for 68 technical ADB’s procurement contracts in Asia product in 2018. Despite the assistance projects. Nonsovereign and the Pacific for goods, works, and impacts of the COVID-19 pandemic, cofinancing for the Philippines has related services under loan and grant the government expects to keep amounted to $961.26 million for operations totaled $14.19 billion in 2019 infrastructure spending close to the 11 investment projects and $1.13 million and $22.79 billion in 2020. Cumulative 2018 level over the next few years. for three technical assistance projects. procurement since 1966 has been Given the wide array of infrastructure $216.35 billion covering 222,415 contracts. projects under the BBB program, In 2020, the Philippines received a total government agencies’ capacity to roll of $1.53 billion loan cofinancing from the For contractors and suppliers from out such large and complex plans will Asian Infrastructure Investment Bank, the Philippines, 18,701 contracts worth need to be further strengthened. ADB the Association of Southeast Asian $16.08 billion have been awarded is supporting the government in this Nations Infrastructure Fund, the Japan since 1966. area through loans, grants, and technical International Cooperation Agency, and the assistance. The bank is working closely World Bank for three investment projects. with the government to enhance the social investments in the bottom 40% will be invested in transportation technical and institutional capacities of of the population. projects, while about 12% will help national and local agencies and staff; expand the public health system. The ADB will focus investments on improve interagency coordination; business plan also includes support for infrastructure, health, and employment and strengthen partnerships among youth school-to-work transition and recovery to help the government the government, private sector, and skills development, environmentally address the impacts of the COVID-19 development partners. sustainable projects that increase pandemic. Under its country operations local economic activity, expanded business plan, 2021–2023, ADB will social protection, increased agriculture FUTURE DIRECTIONS help the government reinvigorate the competitiveness, better public sector private sector and the labor market, ADB’s country partnership strategy for management, and more developed accelerate economic recovery, and the Philippines, 2018–2023 supports capital markets. infrastructure investment, local expand access to public health services. economic development, and increased More than 52% of projected financing

About THE Philippines and ADB Contacts Philippines Country Office ADB Membership 6 ADB Avenue, Mandaluyong City Joined 1966 1550 Metro Manila, Philippines Shareholding and Voting Power Tel: +63 2 8632 4444 Number of shares held: 252,912 (2.377% of total shares) Fax: +63 2 8683 1030 Votes: 292,026 (2.196% of total membership, [email protected] 3.372% of total regional membership) www.adb.org/philippines *Overall capital subscription: $3.64 billion www.facebook.com/adbphilippines *Paid-in capital subscription: $182.15 million Twitter: @ADBPhilippines *United States dollar figures are valued at rate as of 31 December 2020. ADB Headquarters Carlos G. Dominguez is the Governor and Benjamin Diokno is the Alternate Governor for the 6 ADB Avenue, Mandaluyong City Philippines in ADB. 1550 Metro Manila, Philippines Tel: +63 2 8632 4444 Noor Ahmed is the Director and Paul Dominguez is the Alternate Director representing the Fax: +63 2 8636 2444 Philippines on the ADB Board of Directors. Department of Finance Kelly Bird is the ADB Country Director for the Philippines. The Philippines Country Office was 6th Floor, Department of Finance Building opened in 2001 and provides the primary operational link for activities between ADB and the government, the private sector, civil society stakeholders, and development partners. The country corner Pablo Ocampo Street office engages in policy dialogue, country partnership strategy development and programming, Metro Manila, Philippines and portfolio management, while also acting as a knowledge base on development issues in Tel: +63 2 8523 9219 the Philippines. Fax: +63 2 8526 8474

The Philippine government agency handling ADB affairs is the Department of Finance. Useful ADB websites About the Asian Development Bank Asian Development Bank ADB is a multilateral development bank owned by 68 members, 49 from Asia and the Pacific and www.adb.org 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 2020, Annual Report lending volume was $26.9 billion (149 projects), with technical assistance at $293.56 million www.adb.org/documents/series/adb-annual- (275 projects) and grant-financed projects at $1.08 billion (62 projects). In addition, $16.41 billion reports 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 and Supply Chain Finance Program and Microfinance Program. Asian Development Outlook From 1 January 2016 to 31 December 2020, ADB’s annual lending volume averaged $19.69 billion. www.adb.org/publications/series/asian- In addition, investment grants and technical assistance funded by ADB and Special Funds resources development-outlook averaged $805.5 million and $230.81 million respectively over the same period. As of 31 December 2020, the cumulative commitments excluding cofinancing were $323.17 billion in loans for ADB Data Library 3,369 projects in 44 countries, $11.3 billion in 495 grants, and $5.01 billion in technical assistance data.adb.org grants, including regional technical assistance grants.

Notes: Figures are estimated by ADB unless otherwise stated. “$” refers to United States dollars. Data are updated as of 31 December 2020 unless otherwise indicated.