AIIB boosts support for PH infrastructure projects

The Asian Infrastructure Investment Bank (AIIB) has pledged to bolster support for the Philippine government in securing more development grants aimed at resilient infrastructure projects, as announced by the Department of Finance (DOF) on Tuesday.

This commitment was made during the AIIB's annual Board of Governors meeting held from September 21 to 27, 2024, in Samarkand, Uzbekistan.

DOF Undersecretary Joven Balbosa, who represented Finance Secretary Ralph Recto at the meeting, emphasized the critical need for prompt project implementation, stating, “Recognizing that project implementation delays equate to development denied, we request even stronger support from the Bank through regular comprehensive portfolio reviews.”

He urged the AIIB to assist the government and project teams in identifying implementation issues, proposing solutions, and facilitating improved coordination among stakeholders to resolve various challenges encountered during project execution.

In response to the Philippine government's request, the AIIB has agreed to support grant access through the Multilateral Cooperation Center for Development Finance (MCDF) Finance Facility, in which AIIB serves as an implementing partner. The MCDF aims to promote high-quality infrastructure and connectivity investments in developing nations, enhancing the overall capacity for sustainable development.

The DOF also noted that the AIIB is dedicating country-specific focal points to streamline coordination and strengthen partnerships, ensuring the timely delivery of projects that align with President Ferdinand Marcos Jr.'s vision of a comfortable and secure life for all Filipinos.

The AIIB, which comprises 109 member countries, including the Philippines, is a multilateral development bank focused on promoting sustainable infrastructure in Asia.

Current AIIB-supported projects in the Philippines include the Metro Manila Flood Management Project, co-financed with the World Bank, and the Bataan-Cavite Interlink Bridge Project, co-financed with the Asian Development Bank (ADB).

Looking ahead, the Philippine government is in the process of securing AIIB loans for significant infrastructure projects, including the Laguna Lakeshore Road Network Project-Phase 1 and the Metro Manila Rail Transit Line 4 (MRT4) Project, both scheduled for 2024 and 2025, respectively. These projects are also co-financed by the ADB.

Additionally, the AIIB is set to sign its first standalone project, the Facility for Accelerating Studies for Infrastructure (FAST-Infra), this year. This initiative will support the development of a comprehensive transport infrastructure master plan, further enhancing the Philippines’ resilience and capacity for sustainable growth.