The Philippine government is leveraging support from foreign lenders this year to drive its development objectives, securing billions in loans for projects aimed at transforming the country.
Online documents reviewed by the Manila Bulletin revealed that the Marcos administration will borrow a total of $6.35 billion (approximately P369.66 billion) from the Asian Development Bank (ADB) and World Bank this year to fund its projects.
These initiatives focus on improving urban transit, promoting climate-resilient agriculture, expanding clean energy, enhancing sanitation, bolstering health and education services, and upgrading rural infrastructure.
The documents indicated that at least seven concessional financing packages from the ADB and nine loans from the World Bank are scheduled for approval in 2025.
The ADB is expected to approve $2.64 billion (P153.03 billion) in loans and grants to drive inclusive growth.
These funds will support projects aimed at improving sanitation access, enhancing farmer incomes, strengthening food security, and expanding energy access.
Key ADB projects include the $1-billion-worth Manila Metro Rail Transit Line 4 (MRT4) project which will introduce a 13.4-kilometer elevated railway to ease Metro Manila’s eastern traffic, cutting Taytay-Ortigas travel to under 30 minutes while promoting sustainable urban growth.
Others projects are National Total Electrification Support Program, Geothermal Resource De-Risking Facility, Energy Efficiency in Public Buildings Program, Mindanao Agro-Enterprise Development Project, Reducing Food Insecurity and Undernutrition with Electronic Vouchers (REFUEL) Project, Mindanao Irrigation Development Project Phase I, and Baguio Resilient City Tourism Project.
Meanwhile, the World Bank is expected to approve $3.7 billion (about P215.3 billion) worth of development projects this year.
One of the major projects awaiting funding is the Philippines Sustainable Agriculture Transformation, amounting to $1 billion, which aims to “promote climate resilient agrifood systems for increased productivity, enhanced diversification and efficient use of public resources in the Philippines.”
Eight other projects include initiatives on community resilience, education, water supply, energy transition, health systems, civil service modernization, and rural road access.
Department of Finance (DOF) Secretary Ralph G. Recto earlier said that the national government plans to reduce its foreign borrowings to 10 percent over the medium term, making the domestic borrowings stand at 90 percent.
This proposal, according to Recto, targets a gradual shift to 90 percent domestic borrowing to minimize foreign exchange risks beyond 2028.
Last year, the DOF secured 12 financing deals, borrowing a total of $5.67 billion (P333.42 billion) to fund projects in infrastructure, transport, defense, digital technology, health, and agriculture.
As per Recto, the government is committed to responsibly managing public funds by securing cost-effective, concessional agreements with trusted partners to fund long-term projects.