Philippines seeks P2.4 billion loan to boost transport infrastructure

MANILA, Philippines — The Philippines will borrow $44 million (P2.44 billion) from the Asian Infrastructure Investment Bank (AIIB) to develop a transportation infrastructure investment program aligned with the country’s sustainable development goals.

Based on the project document released by AIIB, a total of $50 million (P2.77 billion) is needed to finance the Philippines’ Facility for Accelerating Studies for Infrastructure (FAST-Infra).

Of the total project cost, $44 million (P2.44 billion) will be funded by AIIB while the remaining $6 million (P332.39 million) will be shouldered by the government.

Financing approval is expected by the first quarter of 2024 while the estimated date of loan closing is end-2028.

To be implemented by the Department of Transportation, the project aims to support the formulation of transport infrastructure master plans, covering passengers and goods.

It also targets the development of manuals, guidelines, and tools to plan and define low-carbon, climate resilience, safe, and technology- enabled transport infrastructure, as well as the procurement and implementation activities.

Among the expected results of the project include the approval of a national, regional, and urban transportation infrastructure investment program for select regions, metropolitan areas and cities.

On the other hand, immediate results are the creation of a technical steering committee and data information management system, implementation of a communications and visibility strategy, and adoption of rail standards for safety and security, among others.

The proposed project is likewise aligned with AIIB thematic priorities including green infrastructure, connectivity and regional cooperation, and technology-enabled infrastructure.