The Asian Development Bank has approved the $300 million grant-loan of the Philippines on its road corridor project.
The loan will be used by the government in its infrastructure projects as part of the “Build, Build, Build” program of the Duterte administration.
The grant assistance of the ADB aims to help the government finance infrastructure, implement, and manage public works projects, and strengthen the framework for public-private partnerships.
“As such, increasing the size, liquidity and efficiency of the domestic capital market has taken on ever increasing importance,” ADB said in a statement.
“Given the preferred diversified funding mix, the government’s recent initiatives to improve the capital markets are encouraging and well timed,” said Stephen Schuster, principal financial sector specialist at ADB’s Southeast Asia Department.
“A well-functioning government bond market with competitive auctions provides direct financing for infrastructure at lower costs, while also establishing a reliable pricing benchmark for private companies to issue debt to fund their own projects. The government’s decision to open the finance sector to foreign competition will also help attract more market participants with a diversity of business models,” he added.
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