DOF commits to address issues hindering ADB-funded projects

The Department of Finance (DOF) has pledged to address systemic issues affecting the implementation of projects funded by the Asian Development Bank (ADB). This commitment follows the ADB’s 2024 Philippine Portfolio Review, which assessed the performance of key infrastructure projects managed by the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr).

The review identified several challenges that have been impacting project performance, including difficulties related to right-of-way acquisition and budget constraints. These issues have led to delays in crucial development projects, affecting their overall progress and effectiveness.

“Project delayed is development denied,” the DOF stated, underlining its dedication to resolving these issues. The department has promised to collaborate closely with relevant government agencies and the ADB to propose and implement policy measures aimed at accelerating the delivery of critical transportation infrastructure projects.

Among the projects identified as priorities are the Integrated Flood Resilience and Adaptation Project (INFRA-1), the Improving Growth Corridors in Mindanao Road Sector Project (IGCMRP), and the Malolos-Clark Railway Project (MCRP). These initiatives are integral to enhancing the country’s infrastructure and resilience against climate change.

In response to these challenges, ADB Director General for Southeast Asia, Winfried Wicklein, expressed his support for the Philippine government's efforts. He committed to facilitating the exchange of best practices between international development organizations and Philippine development projects to improve implementation and outcomes.

The ADB recently announced its intention to provide the Philippines with $24 billion in loans between 2024 and 2029. This substantial financial support aims to accelerate economic growth and bolster the country’s resilience to climate change.

The ADB’s Country Partnership Strategy (CPS) for the Philippines highlights several key focus areas for the next six years, including human development, economic competitiveness, infrastructure, and disaster resilience. The strategy also emphasizes supporting low-income households, fostering regional economic growth, and investing in emerging sectors such as clean energy, the blue economy, and nature-based solutions.

ADB Country Director for the Philippines, Pavit Ramachandran, reinforced the bank’s commitment to supporting the Philippine government’s development objectives. He noted that the ADB’s support would include project preparation and feasibility studies under the Infrastructure Preparation and Innovation Facility, as well as transaction advisory services for Public-Private Partnership (PPP) projects.

The CPS aims to drive private sector-led development through policy reforms, market enhancement, and increased investment opportunities. By addressing economic growth and poverty disparities, the ADB seeks to ensure that the benefits of development reach all Filipinos.

Overall, the DOF’s commitment to resolving the issues impacting ADB-funded projects and the ADB’s continued support reflect a concerted effort to enhance infrastructure development and economic resilience in the Philippines.