The Market Monitor Minding the Nation's Business
The Asian Infrastructure Investment Bank (AIIB) has pledged to assist the Philippine government in securing more development grants aimed at promoting resilient infrastructure projects, according to the Department of Finance (DOF).
In a statement released last week, the DOF noted that this commitment was made during the AIIB’s annual Board of Governors meeting, held from September 21 to 27, 2024, in Samarkand, Uzbekistan.
“Understanding that delays in project implementation equate to denied development, we seek even stronger support from the Bank. Regular comprehensive portfolio reviews will help the government and AIIB project teams quickly identify and address implementation challenges, explore potential solutions and strategies, and enhance monitoring and coordination among relevant stakeholders,” said DOF Undersecretary Joven Balbosa, who represented Finance Secretary and AIIB Governor for the Philippines Ralph Recto at the meeting.
The DOF also highlighted that the AIIB is committed to aiding the Philippines in accessing grants through the Multilateral Cooperation Center for Development Finance (MCDF), with AIIB serving as an implementing partner. The MCDF is a multilateral financial mechanism designed to facilitate high-quality infrastructure and connectivity investments in developing countries.
Additionally, the AIIB responded positively to the Philippine government’s request to assign dedicated country focal points, which will streamline coordination and strengthen partnerships. This initiative aims to ensure the timely delivery of projects and programs that align with the Marcos administration’s vision for a comfortable and secure life for all Filipinos.
As a multilateral development bank focused on advancing infrastructure in Asia, the AIIB has 109 member countries, including the Philippines. Current AIIB-supported projects in the country 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).
The Philippine government is also in the process of securing AIIB loans for major infrastructure initiatives such as the Laguna Lakeshore Road Network Project-Phase 1 and the Metro Manila Rail Transit Line 4 (MRT4) Project, expected to be finalized in 2024 and 2025, respectively, both of which are co-financed with the ADB.
Moreover, the AIIB is set to launch its first standalone project, the Facility for Accelerating Studies for Infrastructure (FAST-Infra), which is anticipated to be signed this year.