The Asian Development Bank (ADB) has approved a 300 million USD policy-based loan to support the Philippines’ efforts to strengthen the framework under which the private sector can participate in the government’s infrastructure development programme.
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Reforms under the EPPIP program have been successful in stimulating the PPP market and improving the quality of infrastructure projects in the Philippines, according to ADB Senior Trade Specialist Cristina Lozano. (Source: adb.org)
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ADB said the loan seeks to help and allow public-private partnership (PPP) infrastructure projects in the Philippines to flourish using private sector expertise and innovation.
PPPs can raise the quality of life for citizens by providing reliable public services through efficient infrastructure, said ADB Senior Trade Specialist Cristina Lozano.
With its fast-growing economy, archipelagic geography, expanding the population, and rapid urbanization, the Philippine government aims to raise infrastructure investments to 7.4 percent of the gross domestic product by 2022 from 5.1 percent in 2016.
The Build, Build, Build (BBB) programme, part of the medium-term Philippine Development Plan, is estimated to require a total of 168 billion USD in investments for 75 high-impact priority projects nationwide.
To finance this, the government wants to use an optimal funding mix composed of government spending, official development assistance, and private capital.
Since 2010, the government has awarded a total of 16 national PPP projects worth around 6.2 billion USD.
Classified in 2011 as an emerging country in terms of PPP readiness, the Philippines now ranks seventh in the overall ranking, joining India, Japan, and the Republic of Korea in the group of developed PPP markets, according to the 2014 Infrascope report of The Economist Intelligence Unit. The PPP market review conducted by the Organisation for Economic Co-operation and Development considers the Philippine PPP framework a success./.