ADB preparing over $4 billion in lending to Philippines in 2026

THE Asian Development Bank (ADB) is committed to providing more than $4 billion in loan financing to the Philippines in 2026, targeting transportation, health, and education programs.

“We have a pipeline of around $4 billion for lending to the Philippines. That’s ODA, Official Development Assistance lending,” ADB Country Director for the Philippines Andrew Jeffries told reporters on the sidelines of an event on Dec. 11.

Earlier, ADB President Masato Kanda said the bank’s co-financing is expected to exceed $5 billion this year, and is now preparing around $15 billion in assistance to the Philippines over the next three years.

The ADB was the second-biggest development partner of the Philippines in 2024 with 59 loans and grants worth $11.05 billion.

“We have a pipeline of projects for next year that we need to agree on with the Department of Finance and Department of Economy, Planning, and Development,” Mr. Jeffries said.

“We have a robust set of projects in transport, health, education, and public financial management. A number of them for next year and going on into the future,” he said.

These projects are new, and some are carryovers, including mega projects such as the Bataan-Cavite Interlink Bridge (BCIB) project and the North-South Commuter Rail line.

“They’re so large, and they take many years to construct; the loans are in phases. I think we have some future phases of some of our large projects as part of that number for next year,” he said.

The planned 32.15‑kilometer BCIB, a $3.91‑billion project spanning the mouth of Manila Bay, will link Bataan and Cavite. It is expected to strengthen regional economic integration and spur development.

The ADB, co-financing the project, approved a $2.11-billion loan for the bridge in 2023. The government is responsible for the remaining $664.23 million.

The Department of Public Works and Highways has said the BCIB project will be operational by 2030.

For 2025, Mr. Jeffries said the two projects, the Marine Ecosystems for Blue Economy Development Program Subprogram 1 and the $400-million financing for the Business Environment Strengthening with Technology Program (BEST) Subprogram 1, were the last loans to be approved.

Both projects were approved on Dec. 9, he said.

The approved $500-million policy-based loan support for the Philippine blue economy, announced on Dec. 11, aims to improve the resilience of coastal communities.

Meanwhile, the $400-million BEST program will boost the government’s efforts to improve the ease of doing business in the Philippines.

Mr. Jeffries warned that a weaker peso poses an inflation risk next year, while the Bangko Sentral ng Pilipinas (BSP) rate cuts should give private firms some relief at a time of sluggish investment.

“One risk is if the peso continues to go down against the dollar or foreign currencies more generally, making imports more expensive. So that could have an effect on the overall inflation of imported goods,” he said.

The peso slid to a record low of P59.22 to the dollar on Dec. 11, beating the previous all‑time weak close of P59.17 set on Nov. 12.

The ADB’s December Asian Development Outlook, released last week, projected Philippine headline inflation to average 1.8% this year, slightly above the BSP’s 1.7% forecast.

Inflation averaged 1.6% in the first 11 months of 2025, according to the Philippine Statistics Authority.

“(Inflation) is quite low, and that gives them room to lower interest rates, which means lowered borrowing costs for private companies, which can promote investment. Investment has gone down,” Mr. Jeffries said.

The BSP has lowered key borrowing costs by a total of 200 basis points (bps) since it began easing in August last year, including a 25‑bps cut at its Dec. 11 meeting as the outlook for domestic growth continued to soften.

BSP Governor Eli M. Remolona, Jr. said the central bank may trim rates by another 25 bps next year to conclude its easing cycle.

He also ruled out any off‑cycle or jumbo move, warning such a move could send the wrong signal to markets and risk further eroding confidence by appearing “desperate.”

The lower borrowing costs could help offset the drag that corruption imposes on public and private investment, Mr. Jeffries said.

A corruption scandal involving substandard or nonexistent flood control projects has triggered protests, slowed economic activity, and dampened investor confidence in the country. — Aubrey Rose A. Inosante