ADB extends $974-M loans to finance RP infra projects

The Asian Development Bank (ADB) is planning to extend $974 million in loans to the Philippines over the next two years to fund infrastructure and policy support programs.

The loan is part of the multilateral lender’s country operations business plan for the Philippines, ADB said in a statement.

However, for 2009 alone, the Philippine government is targeting to tap $1.07 billion financing from the ADB to implement various infrastructure projects.

These projects include the following: Integrated Natural Resources and Environmental Management Project, $80 million; Financial Market Regulation and Intermediation Program (Subprogram II), $200 million; Development Policy Support (Subprogram III), $200 million; Philippine Basic Urban Services Sector, $44 million; Multi-tranche Financing Facility (MFF) Road Sector Improvement, $50 million; MFF Road Sector Improvement 2, $50 million; Water District Development Sector, $50 million; Irrigation Systems Operation Efficiency Improvement, $50 million; and Local Government Financing and Budget Reform (Subprogram II), $250 million.

On the other hand, standby loans of $50 million each are being considered for the Agusan Integrated Water Resources Management and the Energy Efficiency Phase 2.

The ADB has already approved seven public sector loans amounting to $1.41 billion from January 2005 to June 2008. This includes five policy-based loans worth $1.35 billion and 25 technical assistance and grant-financed projects worth $28.5 million.

In the same period, the ADB has also generated $559 million in the same period for co-financing and $434.4 million worth of private sector operations. In addition, the bank has supported two bond issues totaling P7.5 billion.

In 2007, the ADB approved loans worth $10.1 billion, the most since its creation in 1966, with Pakistan as the biggest recipient with over $2 billion.  — abs-cbnNEWS.com