ADB raises Philippines' universal health care loan to $750 million amid Middle East shocks
The Philippines has secured a bigger $750-million loan from the Asian Development Bank (ADB) to expand universal health care (UHC) as higher oil prices and supply disruptions due to the prolonged war in the Middle East widen the government’s financing requirements.
In a statement issued on Tuesday afternoon, Aug. 11, the Manila-based multilateral lender said financing for its host country’s Build UHC Program, Subprogram 3 was increased by $250 million from the originally planned $500 million.
The additional financing will come from the up to $1.75 billion in extra support that ADB president Masato Kanda offered President Ferdinand R. Marcos Jr. last May to help the Philippines cushion the economic impact of the Middle East conflict.
The Japan International Cooperation Agency (JICA) is providing around $188 million in parallel cofinancing for the program, also higher than the $130 million originally planned.
Manila Bulletin reported last July that Build UHC Program, Subprogram 3 was among the loans in the ADB’s 2026 indicative lending pipeline for the Philippines, coupled with cofinancing from JICA.
According to ADB documents, the Department of Finance (DOF) borrowed on behalf of the Philippines for the policy-based loan, which seeks to improve equitable access to quality health services for all Filipinos, including services responsive to women’s health needs and the health impacts of extreme weather.
The ADB said the fresh loan will continue to support universal enrollment in state-run Philippine Health Insurance Corp. (PhilHealth) on the back of a drop in household out-of-pocket spending on health to 42.7 percent in 2024 from 48.8 percent in 2019.
The program, which had two earlier subprograms also financed by ADB loans, has likewise expanded PhilHealth benefit packages to cover primary care, emergency services, as well as additional medicines, while increasing no-copayment beds in both public and private health facilities, the lender said.
It has also supported the deployment of mobile health units, emergency medical assistance teams, and community health teams under PuroKalusugan in underserved areas, the ADB added.
“Conflict does not have to cross a border to enter a family’s home. It arrives in the price of medicine... [the] ADB is acting so Filipinos can get the health care they need,” Kanda said.