The Department of Finance (DOF) has secured a stronger commitment from the Asian Infrastructure Investment Bank (AIIB) to support the Philippines in accessing more development grants for resilient infrastructure projects. This agreement was reached during the AIIB’s Annual Meeting of the Board of Governors held from September 21 to 27, 2024, in Samarkand, Uzbekistan.
DOF Undersecretary Joven Balbosa, who represented Finance Secretary Ralph G. Recto at the event, called for AIIB’s enhanced support in addressing project delays. “Recognizing that project implementation delays equate to development denied, we request even stronger support from the Bank through regular comprehensive portfolio reviews,” Balbosa said. He emphasized the need for closer monitoring, coordination, and strategic solutions to overcome project-specific challenges.
The discussions centered around the theme “Building Resilient Infrastructure for All,” which brought together government representatives, civil society leaders, and business experts to address the evolving challenges in infrastructure development across member countries.
A key outcome of the meeting was AIIB’s commitment to assist the Philippines in accessing grants through the Multilateral Cooperation Center for Development Finance (MCDF), with AIIB serving as an implementing partner. The MCDF is a financial mechanism aimed at promoting high-quality infrastructure investments in developing nations.
Balbosa highlighted the need for the AIIB to assign dedicated personnel for the Philippines to ensure smoother coordination and timely delivery of projects. This initiative is seen as pivotal in aligning with President Ferdinand Marcos Jr.’s vision of providing a more comfortable and secure life for Filipinos.
Among the ongoing AIIB-supported projects in the Philippines are the Metro Manila Flood Management Project, co-financed with the World Bank, and the Bataan-Cavite Interlink Bridge Project, co-financed with the Asian Development Bank (ADB). The DOF is also in the process of securing AIIB loans for other major infrastructure initiatives, including the Laguna Lakeshore Road Network Project – Phase 1 and the Metro Manila Rail Transit Line 4 (MRT4) Project, both set to begin in 2024 and 2025, respectively.
Additionally, the AIIB’s first standalone project in the Philippines, the Facility for Accelerating Studies for Infrastructure (FAST-Infra), is expected to be signed within the year. This project will aid in developing a comprehensive transport infrastructure master plan for the country.
The AIIB, established in 2016, has been instrumental in supporting infrastructure development in Asia. The Philippines, one of its 57 founding members, has actively benefited from the bank’s initiatives. The AIIB currently boasts 109 member countries.
During the meeting, the DOF delegation, which included OIC Assistant Secretary Donalyn Minimo and members of its International Finance Group, also held bilateral talks with AIIB executives, including outgoing Vice President for Strategy and Policy Danny Alexander and Acting Vice President for Investment Clients Rajat Misra.
