By Francis Allan L. Angelo
The Philippines underscored its strategic priorities in partnership with the Asian Development Bank (ADB) during the 57th Annual Meeting of the Board of Governors from May 2 to 5, 2024, in Tbilisi, Georgia.
The focus areas include digitalization, infrastructure development, human capital enhancement, and the growth of micro, small, and medium enterprises (MSMEs).
Representing the Department of Finance (DOF), ADB Alternate Governor for the Philippines Undersecretary Joven Balbosa emphasized the ADB’s crucial role in supporting these key areas.
The DOF’s country statement highlighted the need for increased support in both physical and digital infrastructure and capacity building for MSMEs, aligning with the ADB’s 2024-2029 Country Partnership Strategy for the Philippines.
The DOF also advocated for enhanced support for the long-term sustainable development goals of the Bank’s developing member countries (DMCs).
“We hope that the ADB will make further headway on improving and enhancing its organization and structure, operational approaches, and financial capacities to maximize the Bank’s potential in providing more grants and additional concessional financing resources to support developing countries in addressing the gaps and complex challenges in the global development landscape,” the DOF said in a press statement.
In support of the ADB’s enhanced Capital Adequacy Framework (CAF), which aims to provide an additional USD 100 billion in lending capacity over the next decade, the DOF stressed that these resources should address current crises and future challenges effectively.
Additionally, the DOF backed the implementation of the USD 10 billion climate finance program for the Philippines over the next five years and encouraged similar support for other developing nations.
During the ADF 14 Replenishment Meeting on May 2, 2024, the Philippines reaffirmed its commitment to the Asian Development Fund (ADF) to assist the world’s least developed countries.
“This level of contribution maintains the relative position of the Philippines with respect to its previous contribution and the overall fund size, while also meeting the country’s austerity measures in line with the Philippines’ current fiscal consolidation strategy,” Undersecretary Balbosa stated.
Finance Secretary Ralph G. Recto emphasized the importance of solidarity with vulnerable nations to tackle global challenges and highlighted the opportunities for the Philippines as it progresses towards upper middle-income status.
“As a past beneficiary ourselves, we understand that true and lasting change can only be achieved if we combine our efforts and work together. We expect this global assistance platform to open up more opportunities for the Philippines, such as in trade, the exchange of knowledge, dialogue on solutions to our development challenges, and of course increased financing to support our rise to upper middle-income status,” Recto said.
During the Governors’ Plenary on May 4, 2024, the DOF urged the ADB to explore innovative ways to unlock additional resources for DMCs and called on private sector partners to catalyze green investments.
The DOF also promoted the Philippines’ first-ever sovereign wealth fund, the Maharlika Investment Fund (MIF), to HSBC’s Chairman for Public Sector Banking Michael Ellam and Mizuho Bank’s Group Executive Officer and CEO for Asia-Pacific Koichi Zaiki, aiming to encourage more private sector participation in the country’s infrastructure program.
As of December 31, 2023, the ADB is the Philippines’ second-largest official development assistance (ODA) partner, with a total ODA commitment of USD 11.40 billion.
Since the start of the Marcos Jr. administration, approximately USD 4.48 billion in ODA loan financing has been secured from the ADB for priority programs and projects, including the Malolos-Clark Railway Project, the South Commuter Railway Project, and the Climate Change Action Program, the ADB’s first dedicated climate change policy-based loan.
These initiatives are supported by robust grant and technical assistance programs to facilitate studies, project preparation, implementation, and capacity-building activities.
