ADB programs $1.1-B loan package for RP

Expressing confidence in the leadership of President Arroyo, the Asian Development Bank (ADB) has programmed a total of $1.1 billion in loans to support the various projects of the government. Thirty percent of the amount will go to Mindanao.

"The Arroyo government is very promising in terms of stability, and it has displayed a forceful leadership as shown in its dealings with the Mindanao and hostage problem," said Dr. Gunther Hecker, country director for the Philippines of the ADB.

The ADB described the Mindanao hostage problem as "deplorable" but added that the issue has been resolved and is "way past the most difficult period."

Hecker said the $1.1-billion package covers the years 2001 to 2004 and will focus on social sector programs, the energy sector, and Mindanao.

Social sector programs generally involve poverty-alleviation projects while the energy-related component is the $400-million Leyte-Mindanao interconnection project.

"The energy transmission project is not directly a socially-related project but it links the entire Mindanao to the National Grid. It would nevertheless benefit the entire region," Hecker said.

The ADB director said the bank remains consistent in its forecast of a three-percent growth in the country’s gross domestic product (GDP) this year. He said the Philippines can cope with the anticipated slowdown in the global economy if it does not rely too much on electronic exports. The country should not be overly-dependent on its traditional trading partners," he added.

It will depend very much on the United States and the Japanese market," he said, adding that the Philippines could diversify not only its products but also its partners. He cited the Europe as one big market for Philippine products.