ADB set to approve USD 400-M Philippine loan for ‘blue economy’

The Asian Development Bank (ADB) on Tuesday said it is set to approve this year a new USD  400-million loan for the Philippines, which would fund efforts to boost the country’s marine ecosystem and “blue economy.”

“Today, I am pleased to share that a USD  400-million loan for the Philippines is set for approval this year, to strengthen marine ecosystems and support the blue economy under its National Adaptation Plan,” ADB President Masato Kanda said during the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Summit in Kuala Lumpur.

Mr. Kanda was referring to the loan for the Marine Ecosystems for Blue Economy Development Program (Subprogram 1). The program falls under the National Adaptation Plan, which aims to reduce the country’s vulnerability to climate change impacts by boosting adaptive capacity, fostering resilience, and integrating adaptation into relevant policies and programs.

According to the ADB’s website, this project aims to establish an integrated and inclusive management of coastal and marine ecosystems, improved plastic and solid waste circularity.

The “blue economy” refers to the responsible use of ocean resources to foster economic growth, improve livelihoods, and ensure the long-term sustainability of marine ecosystems.

Valued at PHP 943.05 billion in 2023, the blue economy covers fisheries, manufacturing of ocean-based products, tourism, shipping, and offshore energy.

Meanwhile, Mindanao Development Authority Chairman Leo Tereso A. Magno said the multilateral lender has committed to extending assistance to projects in Mindanao.

“They gave an amount during the meeting earlier and they committed for some funds, additional funds for our country, to develop Mindanao and Palawan,” he told reporters in Kuala Lumpur.

Separately, the ADB also expects to approve a USD 62.7-million loan for the first phase of the Mindanao Irrigation Development Project in 2026.

It aims to improve irrigation planning and promote climate-resilient farming systems to boost agricultural productivity in Mindanao.

Another related initiative scheduled for approval next year is the USD  61-million Promoting Sustainability and Productivity for Enterprise Resilience and Upscaling in the Philippines (ProSPER) Project.

ProSPER supports agricultural diversification and food value chain development in Mindanao by “promoting private investments in agro-industry, improving agricultural logistics and services, and enhancing product quality and competitiveness.”

‘Dynamic growth hub’

Meanwhile, Mr. Kanda said the ADB supports BIMP-EAGA’s Vision 2035, which positions the region as a “dynamic growth hub.”

“We stand at a crucial juncture and must navigate a great deal of uncertainty. The region must face the impacts of trade and geopolitical tensions, rapid technological shifts, and threats to food and energy security,” he said.

To unlock the region’s potential, Mr. Kanda said there is a need to tackle vulnerabilities in the food system.

“BIMP-EAGA is known as ASEAN’s (Association of Southeast Asian Nations) food basket, sustaining millions through agriculture, fisheries, and aquaculture. But climate change threatens food security and marine ecosystems. We must act to address this,” he said.

Mr. Kanda said the ADB is scaling up its investment in food security to USD 40 billion through 2030.

“In the Philippines, we have deployed USD 500 million for agricultural development through policy and regulatory reforms, enhanced public services and financial support, and protection of rural families,” he said.

To boost regional energy integration, Mr. Kanda said the ADB is also prepared to commit up to  USD  10 billion to advance the ASEAN Power Grid.

Mr. Kanda also sees opportunities in BIMP-EAGA’s expanded economic corridors and special economic zones.

The ADB chief said the bank is ready to double trade finance in the ASEAN to more than USD  2.5 billion annually by 2030. — A.R.A. Inosante