ADB's Work in the Philippines

ADB is helping the Government of the Philippines address poverty and inequality, tackle climate change, enhance resilience and sustainability, make cities more livable, improve governance and institutional capacity, and promote gender equality. It has embarked on groundbreaking infrastructure investments in the country to boost regional connectivity. It aims to assist the government in achieving a sustainable and climate-responsive economic recovery through quality employment and livelihood opportunities, improved access to social services, enhanced food security, and reduced vulnerability to epidemics and natural disasters.

In 2022, ADB approved its biggest project financing loan for Asia and the Pacific to date through the Philippines’ South Commuter Railway Project. The $4.3-billion project will provide safe, affordable, and reliable transport between Metro Manila and the City of Calamba in the Province of Laguna, around 50 kilometers south of Manila. It will help reduce greenhouse gas emissions, cut travel time by half, and improve connectivity through links with all existing light railway lines.

The bank committed its first dedicated climate change policy-based loan through the $250-million Climate Change Action Program, Subprogram 1. The program aims to support the Philippines in implementing its national climate policies and scaling up climate adaptation, mitigation, and disaster resilience.

To help raise the supply of long-term finance, especially for infrastructure development in the country, ADB committed a $400-million policy-based loan through the Support to Capital Market- Generated Infrastructure Financing Program, Subprogram 2. The program aims to help the Philippines further deepen its domestic capital markets and increase institutional participation, especially from insurance and pension funds.

To help Filipinos meet the new demands for digital and cognitive skills in the labor market, ADB committed a $100-million loan under Supporting Innovation in the Philippine Technical and Vocational Education and Training (TVET) System Project. The project will upgrade and modernize the country’s TVET ecosystem with improved training facilities and equipment, new training courses, and upskilling of TVET trainers.

To date, ADB has committed 621 public sector loans, grants, and technical assistance totaling $29.9 billion to the Philippines. Cumulative loan and grant disbursements to the Philippines amount to $24.09 billion. These were financed by regular and concessional ordinary capital resources, and other special funds. ADB’s current sovereign portfolio in the Philippines includes 23 loans and 1 grant worth $7.55 billion.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Philippines as of 31 December 2022 was $159.19 million representing 1.3% of ADB’s total private sector portfolio.

Operational challenges. Government agencies’ capacity to roll out large and complex infrastructure plans will need to be further strengthened. ADB is supporting the government in this area through loans, grants, and technical assistance. The bank is working closely with the government to enhance the technical and institutional capacities of national and local agencies and staff; improve interagency coordination; and strengthen partnerships among the government, private sector, and development partners.

Workers inspect the construction site of the Angat Water Transmission Improvement Project in Bulacan, Philippines. Photo: Metropolitan Waterworks and Sewerage System

Knowledge Work

ADB extended technical assistance to the National Economic and Development Authority (NEDA) for policy advisory and knowledge support. A change management strategy for NEDA, including reengineering its internal business processes, was conducted to enhance its effectiveness as the country’s lead socioeconomic planning body.

A study on the optimal government-wide institutional and governance structure was conducted to support the Philippines’ transition to upper middle-income country status and in attaining its long-term vision of high and inclusive growth, resilient society, and globally competitive economy (AmBisyon 2040).

A knowledge and support technical assistance to ADB’s developing member countries, including the Philippines, helped the country formulate and implement coronavirus disease (COVID-19) recovery strategies, policies and plans through in-depth analysis, stakeholder consultations, and high-level policy advice.

ADB partnered with the Departments of Labor and Employment, Tourism, and Trade and Industry for a program offering competitive grants to networks of employers for skills training of workers in five priority sectors across the country—agribusiness, construction, information technology-animation, tourism, and women-led enterprises. The program, called SkillsUpNet Philippines, aims to facilitate reskilling and retooling through short-term training, improve skills competencies, and raise the productivity of Filipino employees

  ADB Projects in the Philippines Project data sheets for loans, grants, TAs

Future Directions

ADB is preparing the country partnership strategy for the Philippines covering 2024–2029, which will continue its momentum of support while seeking to re-enforce its focus on mitigating the impacts of climate change, investing in Filipinos, and developing climate-smart infrastructure

Climate action will be a key strategic priority in the coming years. Knowledge support that will inform country sector teams in aligning interventions toward a stronger climate agenda will be provided. Job creation will also be a high priority in ADB’s operations, with a focus on facilitating job transitions and upskilling.

ADB will continue to focus on investments that connect communities through infrastructure; raise the country’s climate readiness through mitigation, adaptation, and conservation; improve disaster resilience; address skills development and support business and employment recovery; advance social protection; and improve access to health care.