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Philippines, ADB sign MOU on $7.1 billion lending pipeline for 2019–2021

Staff Writer |
The Philippines’ National Economic and Development Authority (NEDA) and Department of Finance (DOF), together with the Asian Development Bank (ADB), have signed a memorandum of understanding (MoU) covering an indicative $7.1 billion sovereign lending program to the Philippines from 2019–2021.

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At the MoU signing ceremony on 29 June witnessed by NEDA Secretary Ernesto Pernia, ADB reaffirmed its strong commitment to support the government in raising the country’s growth trajectory and reducing poverty and income inequalities.

Also present at the ceremony were officials from implementing agencies, such as the Department of Public Works and Highways, Department of Transportation, and Department of Interior and Local Government.

The government’s “Build, Build, Build” (BBB) program will be supported by the proposed lending program, with two-thirds of the ADB pipeline, or about $4.5 billion, allocated for projects that connect regions and communities and manage urbanization, such as railways, bridges, roads, and flood management.

The remaining one-third of the pipeline will focus on policy support and social assistance in the areas of inclusive finance, capital market development, local government development, and youth employment. The agreement covers an indicative three-year rolling program that is revisited annually.

ADB’s Country Operations Business Plan 2019–2021 will focus on the strategic priorities of accelerating infrastructure and long-term investments, promoting local economic development, and investing in people to support the government’s objective of lowering poverty to 14% of the population by 2022, from the current 21.6%.

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