Asian Development Bank and Philippines: Fact Sheet
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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 Philippines, 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 Manila’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 Metro Manila. 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