Metro Manila (CNN Philippines, November 14) — The Philippines has secured a multi-billion-peso loan from the Asian Development Bank (ADB) for local governance reforms.
The ADB on Thursday announced that it has approved a policy-based loan worth $300 million or around ₱15.2 billion, aimed at supporting the country’s efforts to help local government units “deliver high-quality and accountable services, boost economic development, and reduce poverty.”
The Local Governance Reform Program aims to improve local government units’ capacity to increase their own revenues and lower the cost of doing business in their cities and municipalities. This is in line with the Philippine Development Plan 2017–2022.
“ADB supports the Philippine government’s goal of creating a high-trust society, where citizens have confidence in the capacity of local government institutions to deliver services to communities and provide a simpler business environment for private enterprises. A healthy business environment will lead to more jobs and strengthen the local economy,” Mr. Jose Antonio Tan III, Director for Public Management, Financial Sector, and Trade at ADB’s Southeast Asia Regional Department, said in a statement.
In July, the Manila-based ADB pledged to lend the Philippines a total of $2.75 billion (around ₱139.67 billion) to help finance the 53-kilometer Malolos-Clark Railway Project. It is the biggest loan it has ever granted for a local infrastructure project.
The regional lender earlier said it is looking to extend $2.5 billion (about ₱128.7 billion) in loans to the Philippines in 2020, matching this year’s level. It is also looking to support local projects like sustainable tourism for Coron and El Nido in Palawan, as well as the modernization of public transport in Davao, to name a few.
