ADB commits $3.8b to reduce poverty

The Asian Development Bank has committed lending $3.8 billion to the Philippines to finance governance reforms and poverty reduction efforts under its six-year country partnership strategy program.

“The new strategy aims to better ensure that all Filipinos, especially the country’s poor, are able to share in the benefits of the country’s economic growth,” said ADB country director for the Philippines Neeraj Jain in his opening statement during the joint press conference of the Manila-based bank and the National Economic and Development Authority Friday.

“As the government frequently notes, weak governance and corruption continue to pose a huge challenge to inclusive and sustainable growth, and ADB will be helping the Philippines remove some of the constraints that are holding the economy back from achieving its full potential,” he said.

The Philippines has grown at a slower pace than other developing economies in the region over the past 40 years, partly as a result of a poor investment climate, low spending in social sectors and weak governance. It is ADB’s fifth- largest borrower.

The new strategy will focus on strengthening the investment environment to attract more private funding for infrastructure development and job creation.

“This new partnership strategy builds on the Philippines’ vision of inclusive growth, where no one is left behind,” said Economic Planning Secretary Cayetano Paderanga Jr.

“By supporting the strategies outlined in the PDP for 2011-2016, the CPS contributes to much-needed structural reforms in the areas of infrastructure, environment and education,” he said.

A significant share of assistance will geared to address policy, institutional and investment obstacles in key sectors such as education, energy and transport. Support to policy reforms and capacity development will be given to help carry out governance reforms from the country level down to individual projects.

The ADB has set indicative lending at $792 million for three major projects in 2011, namely the Energy-Efficient Electric Vehicle Investment Program at $400 million, Justice Reform Program ($300 million) and Road Sector Institutional Development and Investment Project (formerly Road Sector Improvement Project) at $92 million.


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