More funds from France for policy reforms
France earmarks €250 million for two infra development and financial inclusion projects
MANILA – Two credit facilities have been signed by the Department of Finance (DOF) and the Agence Française de Développement (AFD) worth €250 million or P14 billion to support two major policy reforms of the Philippine government hoping to expand financial services to vulnerable sectors and increase private sector participation in infrastructure projects.
In a statement released by Asst. Secretary Antonio Joselito Lambino II, it was learned the programs, co-financed with the Asian Development Bank (ADB) hops to support the Philippine economy and strengthen its resilience to the post-Covid-19 period.
Finance Secretary Carlos G. Dominguez III and French Ambassador to the Philippines and to Micronesia Nicolas Galey signed the agreements for the Inclusive Finance Development Program (IFDP) worth €100 million and the Expanding Privat Participation in Infrastructure Program (EPPIP) amounting to €150 million recently.
Secretary Dominguez said the Philippine government is grateful to the AFD for co-financing with the Asian Development Bank programs supported of President Duterte’s foal of accelerating infrastructure development to stimulate growth, attract investments, create jobs and achieve financial inclusion for all Filipinos.
He added President Duterte has pushed for his centerpiece project, Build, Build, Build on tract despite the COVID-19 pandemic as infrastructure investments will have the highest multiplier effect on the economy, specifically on job creation.
It was learned the €100 million policy-based loan for the first sub-program of the IFDP will help fund initiatives to expand financial services across the country, targeting entrepreneurs, farmers and fisherfolk, women and other vulnerable sectors.
Aside from the policy loan, there are discussion to secure additional funds from the European Union’s Asian Investment Facility through a grant coursed through the Philippines’ PPP Center. The grant aims to facilitate and encourage the development of sustainable PPP projects at the local level in terms of promoting resilient infrastructure and in the mitigation of greenhouse gas emissions.
“Stimulating the development of health infrastructure will be a key component of the forthcoming European Union support,” the statement concluded. (Melo M. Acuña)