$380-M loan for Mindanao roads awaits ADB approval
Updated December 12, 2017 – 12:00am
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MANILA, Philippines — A $380-million project aiming to improve the road network in Mindanao is expected to be approved by the Asian Development Bank (ADB) for loan assistance this week, the Department of Finance (DOF) said.
“The project is expected to be approved by the board on Dec. 14, and it’s up for signing immediately for effectivity early part of next year,” Tan said.
According to the ADB, the IGCMRSP seeks to facilitate the economic development of Region 9, while improving the connectivity on international trade corridors. It involves the construction and upgrade of roads and bidges in the Zamboanga Peninsula and Tawi-Tawi.
Meanwhile, Tan said about three other projects are expected to start early next year through loan assistance from the ADB.
Included in these projects is the establishment of the $100 million Infrastructure Preparation and Innovation Facility (IPIF), which is set to be rolled out by January.
“This will support the DOTr (Department of Transportation) and DPWH (Department of Public Works and Highways) in delivering more effective and innovative infrastructure projects by conducting pre- investments activities to accelerate approvals. This will include preparation of FS (feasibility studies) and detailed engineering design,” Tan said.
“The loan agreement was signed last Nov. 8, and we are targetting that it will be made effective this year so that it could be implemented by first quarter of next year,” she added.
Another project is the $300 million budget support for the Encouraging Investment through Capital Market Reforms Program, which aims to implement measures to increase the availability of long-term financing to fund the country’s infrastructure projects.
Lastly, there is the $300 million loan for the Facilitating Youth School-to-Work Transition Program. The financing assistance seeks to sustain the government initiatives to improve youth employment rates.
“This loan agreement has been signed last Nov. 6. We are targeting loan effectiveness within the month, and the disbursement of the full loan amount, which will support the budget requirements next year by Jan. 5,” Tan said.
Tan said the government is also targeting to wrap up next year negotiations with the ADB for the Expanding Private Participation in Infrastructure Program, with a loan amount of $300 million.
Both sides will also discuss the possible financing program for the Malolos-Clark Railway and the North-South Commuter Rail line from Tutuban in Manila to Los Baños in Laguna.
