THE Asian Development Bank (ADB) on Thursday launched a country partnership strategy (CPS) for the Philippines, with some $24 billion in sovereign lending planned, to ensure sustained and resilient growth amid climate challenges. The six-year agenda for 2024 to 2029 is focused on human development, economic competitiveness, quality infrastructure, nature-based development, disaster resilience and will also promote digital transformation, gender equality and stronger governance. ADB Country Director Pavit Ramachandran said the country was on track to becoming an upper-middle-income country, but added that more efforts were needed to ensure that the benefits of strong growth reach all Filipinos, especially the most vulnerable. "Development challenges need to be addressed so that the growth momentum will not be derailed," he added. "The country's high vulnerability to climate change, which affects the poorest of the poor, and persistent poverty and income inequality, need to be urgently addressed," he added, stressing that this strategy will help address those challenges. He noted that the ADB provided $4.5 billion in both sovereign and non-sovereign assistance last year and expected to sustain a similar level of annual financial support under the new CPS. The ADB said the Philippines qualified for regular market-based lending through its ordinary capital resources (OCR), with sovereign lending for the medium term expected to total $24 billion. The amount could increase based on strong government demand and OCR availability. ADB will also consider limits and debt stress risks. "This is an indicative amount which is subject to annual review with the government," Ramachandran said. "Our support includes project preparation and feasibility studies for the government's big-ticket investments under the Infrastructure Preparation and Innovation Facility as well as transaction advisory services for public-private partnership projects," he added. Loan and grant cost-sharing will be set at up to 99 percent across the portfolio, the ADB said, with specific arrangements to be determined. To keep the Philippines on its growth path, Ramachandran said the new strategy would boost support for low-income households, promote regional growth through key infrastructure projects and focus on emerging sectors like clean energy, blue economy and nature-based investments. The ADB will work closely with local communities, government agencies and partners to tackle challenges like infrastructure gaps and climate change, he added. "ADB will work to embed climate actions across its engagements and investment plans in the country," Ramachandran said. "Under the new CPS, ADB will also catalyze private sector-led development by supporting policy and regulatory reforms, strengthening of markets and investment pipelines, and expanding funding availability."
Read The Rest at :
