ADB Projects in Philippines 
(as of 31 July 2009)
TITLE
[Responsible ADB Staff]
POWER
Power Sector
Development Program
(PSDP) 1
MR. YONGPING ZHAI
yzhai@adb.org
(SERD)
DESCRIPTION
TYPE OF
ASSISTANCE
DATE OF
APPROVAL
AMOUNT
(US$)
To create a competitive power sector through privatization of
National Power Corporation’s (NPC) generation assets and
concession of TRANSCO’s (National Transmission Co) assets.
Outputs: Financial viability of the power sector restored; Regulatory
framework and performance improved; Market restructured toward
competition; Private participation in power generation and
transmission increased; Consumers informed and protected.
Subprogram 1 aims to restore financial viability of power sector and
specifically support Government's assumption of P200B of NPC's
debt. (Japan Bank for International Cooperation/JBIC co-financed
an additional $300M loan2).
Loan
(Subprogram 1)
Dec 2006
(Closed in
Jun 2009)
(for approval
in 2011)
450.0M
(OCR)
(for approval in
2012)
350.0M
(OCR)
Loan
(Subprogram 2 ’Power Distribution
Reform’ )
Loan
(Subprogram 1)
200.0M
(OCR)
Status as of 30 Jun 2009: The program has been implemented satisfactorily. Over 70% of NPC's eligible generation assets have been bid out,
and the concession for TransCo has been awarded and turned over to the concessionnaire. PSALM is conducting bidding of Independant
Power Producer Administrators (IPPAs); IPPAs will enhance competition in the wholesale electricity spot market (WESM). Regular policy dialog
with Government and consultations with all stakeholders such as consumers, industry players, investors, other financiers are being undertaken.
[The power sector reform and restructuring has reached a critical juncture. While it has been widely recognized that the financial crisis of the
power sector is the serious result of substantive delays in the sector policy reform and restructuring implementation, some vested interests
opposing the ongoing sector reform and restructuring cite it as a principal cause of the current sector financial crisis and suggest returning to

By VIOLETA P. CORRAL, Public Services International Research Unit-Asia (www.psiru.org).
Includes projects in Water, Power, Health / Education, etc (ongoing, pipeline & recently completed).
ACRONYMS: OCR – Ordinary Capital Resources; SERD – Southeast Asia Regional Department; PSOD – Private Sector Operations Department; RSDD –
Regional and Sustainable Development Department
1
the previous vertically integrated government -owned monopoly. Therefore, timely undertaking of aggressive steps to continue the efforts to
complete the sector policy reform and restructuring has become even more critical and fundamentally important that both the Government and
ADB should reiterate confidence in achieving policy objectives of such initiatives and envisaged development impacts and results.]
Rural Electric
Cooperatives 3
MR. YONGPING ZHAI
yzhai@adb.org (SERD)
Visayas Base Load
Power 4
MARY ABAD
mvabad@adb.org (PSOD)
Philippine Energy
Efficiency Project 5
SOHAIL HASNIE
shasnie@adb.org
(SERD)
Privatization and
Rehabilitation of 600-MW
Calaca Coal-Fired Thermal
Power Plant 6
CHRISTINE GENALIN C. UY
cguy@adb.org
(PSOD)
1. Distribution systems upgraded/rehabilitated.
2. Sub-transmission assets acquired and operated by ECs
3. EC Participation in the WESM.
Construction and operation of a 200MW power plant that will
provide base load power to the Visayas grid. Proponent is joint
venture of Korea Electric Power Corp (KEPCO) and SPC Power
Corp.
Outputs: 1. Lighting retrofits in selected government buildings; 2.
13 million compact fluorescent lamps (CFLs) distributed to
consumers; 3. Implementation of energy-efficient public lighting
programs; 4. Expansion of testing laboratory capacity and
establishment of a waste management facility; 5. Establishment of
the super ESCO; 6. Certification system for energy-efficient
buildings operating; 7. Implementation of a communication and
social mobilization program
Project sector loan to Suez Tractebel-S.A. involves acquisition,
refurbishment and operation of 600MW Calaca Power Plant in
Batangas, offered for sale by PSALM in Oct 07. Calaca Holdco Inc
(subsequently renamed Emerald Energy Corporation (Emerald), a
special purpose company wholly-owned by Suez Tractabel S.A.
won the bid; electricity generated by Calaca will be sold through
WESM (spot market) and bilateral contracts. Project was cancelled
when Emerald decided to terminate its purchase contract with
PSALM in Jan 2009.
Loan
(for approval
Oct 2010)
57.0M
(OCR)
Private sector loan
(for approval
18 Aug 2009)
120.0M
Loan
Jan 2009
31.1M
(OCR)
Private sector loan;
Political risk
guarantee (PRG)
For approval
June 2008
(CANCELLED)
120.0M (Loan);
90.0M (PRG)
2
Acquisition and
Rehabilitation of Masinloc
Coal Fired Thermal Power
Plant 7
MARY ABAD
mvabad@adb.org (PSOD)
Project involves acquisition, rehabilitation, and operation of existing
600MW Masinloc coal-fired thermal power plant in Zambales
province by Masinloc Power Partners Co. Ltd. (MPPC), an indirect
subsidiary of AES Corporation of United States. Electricity
generated from Masinloc will be sold through WESM for Luzon grid
and bilateral contracts. Masinloc is one of NPC generation assets
already privatized.
Private sector loan
(Fully disbursed)
Jan 2008
250.0M
The sale of the Masinloc plant in July 2007 has brought in $930 million of revenues to the government. With this sale, 25% of the privatization
target has been achieved. Upon taking ownership of the facility, MPPC will be responsible for rectifying the environmental issues identified
during the audit to meet Government requirements within two years through a Remedial Action Plan. The proposed rehabilitation work aims to
bring the plant's operating and environmental performance back to the original design standards and does not involve any expansion or
additional facilities. Moreover, it will improve the operating efficiency, reduce environmental emissions, and increase the health and safety
standards of the plant. The Project has been classified as environmental category B. Implementation by AES of a comprehensive environmental
management plan according to an ‘ISO 14001-consistent’ environmental management system will be monitored throughout the life of the ADB
financing. Significant consultations with stakeholders were conducted in connection with ADB's public sector loans 1398-PHI and 1042-PHI to
finance the original construction of the Masinloc plant.
Pasuquin East Wind Farm
Development Project 8
DON PURKA
dpurka@adb.org (PSOD)
Electricity Market &
Transmission
Development 9
MR. YONGPING ZHAI
yzhai@adb.org
(SERD)
TA will fund feasibility study of Energy Logics Philippines, Inc.
(ELPI)’s wind farm project in Pasuquin East, Ilocos Norte. The
feasibility study will cover wind farm layout based on 120MW
installed capacity, construction phases, site boundaries and other
parameters.
(i) Provide infrastructure for establishment of Wholesale Electricity
Spot Market (WESM), which would allow privatization of electricity
generation companies to meet power demand at a lower cost; (ii)
reinforce and upgrade critical transmission lines and substations in
Luzon and Mindanao along TRANSCO's least-cost transmission
development plan.
TA
(Clean Energy Fund
– Multidonor)
Jun 2008
0.2M
Loan
Dec 2002
40.0M
(OCR)
Part A includes procurement and installation WESM hardware, software and system integration. Part B includes (i) Luzon transmission line
upgrading (about 79.6 km of 230 kV double circuit transmission lines from San Manuel to Conception and 37.4 km double circuit transmission
lines from Concepcion to Mexico and associated substation expansions); and (ii) Mindanao substation expansion (procurement and installation
of additional power transformers and power circuit breakers at the Davao, Bislig, Butuan, Kibawe, Sta. Clara and Tindalo. [WESM started
commercial operations in June 2006, but more training is needed for potential users and customers, particularly 119 electric cooperatives. Other
key ingredients needed for market to function are lacking, inc software and hardware for individual market participants, risk management
mechanisms and software, and prudential (cash) requirements to guarantee costs of market electricity purchases. (p. 19, SAPE)] 10
3
Power Sector
Restructuring Program
(PSRP) 11
MR. YONGPING ZHAI
yzhai@adb.org
(SERD)
President Gloria Macapagal-Arroyo signed into law the TransCo Franchise Bill (RA 9511, Appendix 4) on 1 December 2008, granting the
National Grid Corporation of the Philippines (NGCP) a franchise to engage in the business of conveying or transmitting electricity through high
voltage back-bone system of interconnected transmission lines, substations and related facilities, and for other purposes. The NGCP remitted
US$987.5 million to PSALM as its upfront payment for the operation of the transmission system and in compliance with the provisions of the
sale transaction. The amount comprises 25% of the US$3.95 billion purchase price to acquire the concession contract. PSALM formally turned
over on 14 January 2009 the 25-year concession of TransCo to NGCP. With the signing of the deed of transfer, the NGCP officially has the
authority to operate the country’s sole transmission system starting 15 January 2009. [The construction and installation contract for Mindanao
Substation Expansion has been put on hold due to the pending privatizaiton of TransCo; project commissioning is expected in October 2010.]
To prepare NPC for privatization, transfer ownership of generation to
Loan;
Dec 1998
300.0M; 500.0M
private sector; separate transmission will remain in government hands for
Partial credit
(Closed in 2002)
a while longer. Legislation to be amended and a government privatization
guarantee
plan approved. Cofinancing $300 million loan from JBIC. Project aims to
restore NPC's financial sustainability in period prior to privatization; loan
will finance some adjustment costs of restructuring, which include debt
burden, incorporation of long-term take-or-pay contracts with IPPs into
competitive framework, and separation payments to NPC employees;
Department of Finance is executing agency.
PSRP has 9 policy objectives and 59 conditions. Legal and regulatory framework was put in place for introduction of competitive electricity
markets and integrated generation and transmission system was unbundled prior to NPC’s privatization. Financial viability of sector was not
achieved given delay in privatization of NPC; competitive markets not yet established and no significant improvements in operational
efficiencies of generation, transmission, and distribution utilities (pp 18-19, SAPE)
WATER
Water District
Development Project 12
RUDOLF FRAUENDORFER
rfrauendorfer@adb.org (SERD)
Implementing Pilot
Projects for Small-Piped
Water Networks
(Regional) 13
Designed to help improve living conditions for urban residents in provincial
cities by developing water supply and sanitation facilities and boosting the
capabilities of existing water utilities, and further enhance the service of
state agency Local Water Utilities Administration (LWUA), which provides
water districts with financial and technical assistance. The government is
currently streamlining LWUA and refocusing its lending operations to
support smaller water districts. Due to limited funding access, smaller
water utilities often suffer from low efficiency and poor quality of service,
and are unable to expand and rehabilitate their facilities.
SPWN pilot projects implemented in Kabisig, Batasin, Panghulo, Ibayo in
Rizal Province (Philippines), and India & Vietnam. The PHI survey of
13,895 households and 500 SSWPs was completed in May 2006. The
proposed registration procedure for the SWPs was submitted to the
Loan
(for approval in
Aug 2010)
50.0M
(OCR)
French TA grant;
TA Special Fund
Oct 2005
0.2M;
0.2 M
4
ANAND CHIPLUNKAR
achiplunkar@adb.org
(RSDD)
MWSS New Water Source
Development 14
MR. YUJI TSUJIKI
ytsujiki@adb.org (SERD)
Pasig River Environmental
Management and
Rehabilitation Sector
Development Program 15
PAULUS B. VAN KLAVEREN
pvanklaveren@adb.org
(SERD)
National Water Resources Board. Survey report has been prepared.
Workshops in the pilot project sites were implemented. Regional workshop
done in April 17-18, 2008. Toolkit has been finalized and printed.
Accompanying CD has also been finalized and attached in the final
product (toolkit). The Philippine pilot project was established with the
signing of a memorandum of understanding by Mr. Lohani, and Antonio
Aquino, President of MWCI.
Studies for 2 water source projects – 50 MLD Wawa River Project
TA Loan
Oct 2003
3.3M
and (ii) Angat Water Utilization and Aqueduct Improvement Project
(Closed in
(AWUIAP) – completed. MWSS requested cancellation of studies
Oct 2008)
for preparing the Laiban Dam Project.
Investment Loan
July 2000
75.0M
Outcomes:  Reduced BOD loading on Pasig River by 16 tons per
(Closed in
(OCR)
day, through the implementation of sanitation services: septage
Sep 2008)
collection and disposal  Reduced BOD loading on Pasig River by
5 tons per day, through the relocation of 10,000 families along river
bank  Improved living conditions for 80,000 families through urban
renewal of 500ha  Improved living conditions for 10,000 families
through relocation.
Status of STP: STP (septage treatment plant) site has been identified in Antipolo City. The contract for the STP was awarded on
13 July 2006 and has 20% progress as of 31 May 2007. The vacuum trucks have been delivered and accepted by MWSS on 12
September 2006. The contract was suspended by the Contractor as of 26 July 2007 due to non-payment of progress billings.
MWSS reported that the issue is still under negotiations with the Contractor.
HEALTH
Credit for Better Health
Care Project 16
VINCENT DE WIT
vdewit@adb.org
(SERD)
Outputs: Upgraded LGU health services; More efficient health care
delivery systems through PPP and innovative strategies; Improved
access to small-scale private providers; Enhanced institutional
capacity for health sector lending.
Loan
Mar 2009
50.0M
(OCR)
The loan will finance the construction of new public health facilities and provide state-of-the-art equipment to existing facilities, with a particular
focus on providers of maternal and child care health services and partnerships with the private sector. This will help facilities qualify for higher
accreditation and increased financing from the Philippine Health Insurance Corp. (PHIC), and reduce the out-of-pocket payment of health care.
Project will also provide financial support to small private health providers – such as midwifery clinics, diagnostic facilities, and community drug
stores – to allow them to move closer to rural communities. It will also provide funds for capital investment and working capital to promote a
more efficient health care delivery system through the outsourcing of services, and establishing private insurance schemes. Loan will be
5
coursed through the Sustainable Health Care Investment Program, a credit facility established by the Development Bank of the Philippines to
support the government's health sector reform agenda and implementation framework, Fourmula One for Health. The credit facility has two
lending windows. The direct retail lending window is for local government units (LGU) and larger private sector borrowers, such as health
providers, foundations, and health maintenance organizations, with projects costing between $100,000 and $5 million. The wholesale lending
window is available to accredited financial intermediaries, such as microfinance institutions and rural and thrift banks, where small private
companies can borrow from $100,000 to $500,000. [A 1.0M TA on Public-Private Partnership in Health is piggy-backed to the loan.]
Support for Health Sector
Reform
MS. KARIMA SALEH
ksaleh@adb.org
(SERD)
Health Sector
Development Program17
EMIKO MASAKI
emasaki@adb.org (SERD)
To support Government's Health Sector Reform Agenda (HSRA),
established in 1999 to improve efficiency of country's public health
service delivery system by integrating health care promotion and
prevention, expanding referral links, reducing need for
hospitalization, and improving allocation and use of resources.
TA grant
Sep 2005
(Closed)
1.0M
TA will help Department of Health to streamline policies and refine monitoring systems, and will assist local government units (LGUs) in
initiating and carrying out these reforms in 15 selected provinces. TA will: Streamline mechanisms in core referral hospitals to improve
performance; Improve the quality of public health provision by introducing cost-effective interventions, clinical practice guidelines in health
facilities, and piloting programs for public health interventions in LGUs; Provide an integrated framework for a rationalized health system at the
LGU level, address priority diseases, and explore measures to improve procurement and deployment of equipment, drugs, and supplies; Pilot a
strategy for more cost-efficient procurement of drugs, including standardizing the quality and prices of drugs; Propose new schemes to
increase coverage of beneficiaries under the Philippines Health Insurance Corporation; Propose a mode of financing for capital investment to
LGUs
ADB is among first to provide Department of Health with
Loan
Dec 2004
213.0M
comprehensive support for implementing HSRA, a comprehensive
(200M loan is
(OCR)
approach that relies on reforms in five major areas: health care
closed)
financing, local health systems, public health programs, hospital
systems and health regulations.
13.0M loan Project is designed as a sector project to cover five provinces (ifugao, Ilocos Norte, Nueva Vizcaya, Oriental Mindoro,
and Romblon), to increase utilization of affordable and financially sustainable quality health services by the poor based on
progressive implementation of the Health Sector Reform Agenda.
EDUCATION
Supporting Information
Sharing and Exchange
among Civil Servants 18
KENJI TAKAMIYA
ktakamiya@adb.org
Philippine civil service has been inefficient and ineffective in meeting high
standards for the delivery of quality public services. Civil service reforms
aim to improve government machinery or administrative infrastructure to
make it work for efficient and effective governance. The Government
through the implementation of Executive Order 366 on Streamlining
Government Functions tries to improve public service delivery through
Grant
(Japan Fund for
Information and
Communications
Technology)
Mar 2006
0.5M
6
reengineering the organizational structures of government departments
and government-owned corporations. In support of Government's civil
service reform efforts, however, apart from the aspect of improving the
efficiency of management, the need to integrate the key stakeholders, i.e.,
the civil servants themselves, in improving the delivery of public services is
acutely recognized. Their capacity needs to be developed so that the civil
servants themselves can be an important agent for change.
Fund for Technical
Education and Skills
Development 19
SUSAN KERR
sakerr@adb.org (SERD)
Secondary Education
Development and
Improvement 20
WENDY DUNCAN
wduncan@adb.org (SERD)
To strengthen TESDA as a central training authority. To devolve
training to LGUs and non-government institutions. To remove
constraints to private skills training. To enhance equity in skills
acquisition among disadvantaged groups. (An undisbursed balance
of $2,170,096 was cancelled.)
Loan
Aug 2000
(Closed in
Jun 2009)
19.87M
(OCR)
Improved equitable access to quality education in the poverty affected
rural provinces (SRA): reduced disparity in net enrollment rate (NER) and
completion rate (CR) between the national SRA provinces (by 5 percent
NER and 2 percent CR). There is evidence of improvement in the teaching
and learning process in SEDIP schools as a result of school heads and
teachers' training. The school heads are better able to provide guidance
and support to the teachers and the teacher's classroom management and
teaching skills have improved. The impact on net enrollment rates and
completion rates is currently being assessed by DepEd.
Loan
Dec 1998
(Closed in
Oct 2008)
53.0 M
(OCR)
Loan
(Subprogram I)
Loan
(Subprogram II)
Dec 2006
(Closed)
(for approval
Dec 2010)
200.0M
(OCR)
200.0M
(OCR)
OTHERS
Financial Market
Regulation &
Intermediation Program 21
V. V. SUBRAMANIAN
vsubramanian@adb.org
(SERD)
FMRIP aims to promote a more diversified set of financial
markets that are more efficient and resilient. These objectives will
be achieved through a mix of reforms at various levels, including
policy, governance, institutions, and operations.
Subprogram 1 supports Government’s financial sector reform agenda, with a focus on development of capital markets and other nonbank
services. Subprogram 1 aims to (i) reduce financial sector vulnerabilities and increase the depth and diversity of financial intermediation through
improved resolution of banks and stronger nonblank financial institutions; (ii) strengthen investor confidence with improved regulation,
governance, and transparency; and (iii) improve operational efficiency of the securities market. From a market perspective, subprogram 1 will
cover debt and equity markets, deposit insurance, and the insurance subsector. Subprogram 2, more liquid markets through unlocking the
potential of securities markets by measures that (i) promote liquidity, financial deepening, and strengthened intermediaries; (ii) enhance
information reporting and disclosure standards through convergence to international standards; (iii) develop a broader investor base; (iv) reduce
systemic risk and lower transaction costs through improved settlement and payment systems; and (v) strengthen policy and regulatory
capabilities to address legal, regulatory, supervision, financial governance, and enforcement challenges of a more open and integrated (both
7
regionally and globally) economy and financial sector.
Basic Urban Services
Sector Project 22
FLORIAN M. STEINBERG
fsteinberg@adb.org
(SERD)
Irrigation Systems
Operation Efficiency
Improvement Project
Comprise of Infrastructure and Services and Institutional Capacity
Development & Policy Reforms, outside Metro Manila and support
for program management, LGU capacity development, and policy
reforms for more efficient and effective urban services delivery,
among others thru viable public-private partnerships (PPPs).
The investments are expected to focus on Mindanao, Aklan and
Antique provinces
Loan
(for approval
Sep 2010)
41.0M
(OCR)
Loan
(for approval
June 2010)
100.0M
(OCR)
Impact, Outcome, Outputs - tbd
Loan
(for approval
Mar 2010)
100.0M
(OCR)
23
IAN WILLIAM MAKIN
imakin@adb.org (SERD)
Integrated Natural
Resources & Environment
Management 24
AHSAN TAYYAB
atayyab@adb.org (SERD)
Local Government
Financing and Budget
Reform 25
TARIQ H. NIAZI
tniazi@adb.org
(SERD)
LGU avail of enhanced resources and capacities to plan and budget for
Loan
13 Dec 2007
300.0M
the general welfare of their constituent communities in a transparent and
(Subprogram I)
(Closed in
(OCR)
accountable way – 1. Completeness, timeliness, and transparency of
April 08)
release of LGU shares in national government revenues is improved. 2.
Loan
(for approval
225.0M
Efficiency and accountability in financial management, planning, and
(Subprogram II)
Nov 2009)
(OCR)
expenditure management at the local level is enhanced. 3. Effectiveness
and transparency in the delivery of critical public services at the local level
is enhanced. 4. LGU access to public and private sources of capital for
financing of policy reforms and development projects is improved. 5.
Additional sources of revenues developed at the local level, thereby
reducing dependency on the IRA.
Completed the following:  Passage of Republic Act 9358;  IRA release to LGUs amounts to P183B in 2007 and P210B in 2008; 
Predictability of annual IRA release ensured by DBM in time for preparation of LGU budgets from 2007;  Documentary requirements on
release of LGUs’ share in proceeds from development and utilization of national wealth in mining, forestry, and energy reduced from five to two
by Dec 2007;  Coordinated framework developed for harmonization of local planning and budgeting;  Updated Budget Operations Manual
issued with 90% of LGUs trained on it ;  SRE financial reporting system is harmonized with NGAS, computerized, and available at BLGF for
all provinces, cities, and municipalities from 2007;  LGU financing framework approved;  Executive Order issued requiring BIR to provide
tax information to LGUs;  Revised interpretation of situsa of Tax Rule for Banks in levying local business tax. For completion under LGFBR-2:
8
Development Policy
Support Program26
KELLY BIRD
kbird@adb.org
(SERD)
 Requirements for release of the special share of LGUs in mining taxes further reduced by BIR by Dec 2008;  Provincial plans prepared using
guidelines on Provincial/Local Planning and Expenditure Management for 2008 and 2009;  Competency reports completed by BLGF for 50%
of local treasurers by 2009;  217 fourth to sixth income class LGUs avail of financing for improved service delivery through investment in
urban infrastructure and public services with total loans amounting to P2.7B;  250 LGUs avail of financing for improved service delivery
through investment in environmental and health projects by June 2010;  100% of LGUs covered by Local government Performance
Measurement System;  Guidelines for allowing LGUs to open depository accounts in private banks available by Dec 2008;  At least 10
additional LGUs have access to a PROLEND loan by June 2010;  At least 100 additional LGUs have access to a Millennium Development
Goal loan by June 2010;  BIR regional offices required to provide tax information to LGUs by Dec 2008;  Guidelines on the Situs of Tax
Rule for Mining Firms in levying local business tax available by Dec 2008;  Valuation standards for equipment and machinery available as an
addendum to the Assessor’s Manual in 2008;  LGU officers from 70 LGUs have access to valuation training on equipment and machinery
offered by NTRC and BLGF by 2009
Covers reforms in fiscal policy, governance in public financial
Loan
Feb 2007
250.0M
management, the investment climate, and social inclusion. DPSP will
(Subprogram 1)
(Closed)
(OCR)
support Government’s efforts to (i) achieve and sustain higher economic
Loan
Sep 2008
250.0M
growth and (ii) reduce poverty and unemployment. [The program cluster
(Closed in
(Subprogram 2)
(OCR)
period will be from Nov 2004 to Dec 2009.]
Nov 08)
Loan
(Subprogram 3)
(for approval
Sep 2009)
250.0M
(OCR)
DPSP cluster will undertake strategic reforms to: (i) restore fiscal sustainability, maintain macroeconomic stability, and improve creditworthiness
by enhancing the quality of fiscal management through raising tax revenues, strengthening tax administration, reducing inefficient spending,
and strengthening the debt management strategy; (ii) enhance governance in public expenditure management and support the Government’s
measures to reduce corruption in the revenue-collecting agencies of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC); (iii)
improve the investment climate by clarifying and strengthening the legal and regulatory framework for investments and infrastructure; and (iv)
protect the social sectors by improving the access to and quality of social services, and enhancing poverty monitoring and targeting.
Strengthening the Philippine
Government Electronic
Procurement System 27
Improved transparency and efficiency of the government
procurement
TA Special Fund
Mar 2009
0.6M
GJSRP will support to enhance the rule of law in the Philippines. Outputs:
1. Strengthened judicial fiscal autonomy and accountability, and
transparent use of resources in the justice sector. 2. Implement
mechanisms to enhance justice sector integrity. 3. Supporting efficiency in
justice sector. 4. Improved access to justice for the poor and vulnerable
groups. 5. Expanding delivery of justice through alternative dispute
Loan
(Subprogram 1)
Dec 2008
300.0M
(OCR)
GALIA ISMAKOVA
gismakova@adb.org
Governance in Justice
Sector Reform Program 28
JOVEN Z. BALBOSA
jbalbosa@adb.org
(SERD)
9
resolution.
Agrarian Reform
Communities Project II 29
MANOSHI MITRA
mmitra@adb.org (SERD)
Integrated Coastal
Resources Management 30
MA LOURDES DRILON
mldrilon@adb.org
(SERD)
Government Owned and
Controlled Corporations
Reform 31
JOVEN Z. BALBOSA
jbalbosa@adb.org
(SERD)
Microfinance Development
Program 32
JULIE ROGERS
jrogers@adb.org
(SERD)
Support for community-driven development (CDD), support to new and
expanded ARC organizations and their business-oriented activities,
increased effective participation of the poor in community planning and
decision-making, agri-enterprise development, infrastructural support, and
mainstreaming of project management.
(i) Policy environment and legal framework for integrated coastal
resources managemennt (ICRM) rationalized, institutional capacities
strengthened, and governance improved; (ii) ICRM institutionalized and
functional at the local levels, and coastal ecosystems and resources in the
threatened areas of biodiversity are protected and managed; (iii)
Alternative and supplementary livelihoods provided; (iv) Health and social
conditions in the coastal communities improved. [ADB will also administer
a $9.0 million Global Environment Facility (GEF) grant for the project.]
Selection of pilot GOCCs for proposed reforms to improve operational
efficiency and financial condition. Clear guidelines on the mandate and
role of GOCC as public service providers. Clear GOCCs performancebased criteria and incentives. Define the Government oversight agencies'
power, structure, resources and functions over the GOCCs. Clear
accountability and established basis for performance review. More
effective and efficient data banking and information management system.
TA covers 4 GOCCs that will serve as pilots for broader reforms across
the sector in the future: Home Guaranty Corporation (HGC), National
Development Company (NDC), Light Rail Transit Authority (LRTA) and
Philippine National Railways (PNR).
Support the Government's program for expansion of a sound microfinance
sector that will encourage private-sector participation in the delivery of
microfinancial services, address systemic weaknesses, and promote
access to sustainable, competitively priced financial services for the poor
and their microenterprises. The program will reinforce the National
Strategy for Microfinance developed by the National Credit Council,
chaired by the Department of Finance.
Loan;
Oct 2008
70.0M (OCR);
30.0M (OFID)
Loan
Jan 2007
33.8M
(OCR)
TA Special Fund
Jun 2006
(Closed)
0.75M
Loan
Dec 2005
150.0M
(OCR)
OPEC Fund for
International
Development (OFID)
10
Support Sale of Equitable
PCI Bank NPL and NPA
Portfolio 33
(PSOD)
Resolve Nonperforming
Assets in Philippine
Housing Sector 34
(PSOD)
Local currency loan to a special purpose vehicle (SPV) to finance the
Private sector loan
Jul 2005
98.0M
purchase of a portfolio of nonperforming loans and nonperforming assets
(NPLAs) from Equitable PCI Bank and Equitable Savings Bank. The SPV,
Cameron Granville Asset Management (SPV-AMC) Inc., has been
acquired by a subsidiary of Bayerische Hypo- und Vereinsbank AG (HVB).
HVB is the second-largest bank in Germany and one of the leading banks in Europe with total assets of about EURO469.9 billion. Over the past
few years, it has led and participated in workouts and restructuring of significant distressed assets transactions in Asia. Portfolio being acquired
has a book value of US$98 million equivalent. HVB's Singapore branch will service the portfolio. Transaction is in line with the Philippine
Government's medium-term plans to promote a stronger and more stable financial sector and the development of domestic capital markets.
[ADB has also just provided assistance and support to National Home Mortgage Finance Corporation (NHMFC) in its sale of a portfolio on
delinquent mortgage loans to DB Real Estate Global Opportunities IB, LP. Aside from the Philippines, ADB is also involved in a number of other
NPLA related transactions in India and the People's Republic of China. In 2004, ADB invested as anchor investor in two distressed asset funds.]
Help the Philippine National Home Mortgage Finance Corporation
Loan;
May 2005
PhP1.6B (loan)
(NHMFC) resolve its portfolio of highly-delinquent mortgage loans through
Equity investment
a P1.6 billion loan. Loan is for Balikatan Housing, Inc., a special purpose
company jointly owned by the NHMFC (49%) and DB Real Estate Global
Opportunities IB, LP (DBGO) (51%) that will acquire the nonperforming
loans (NPLs) from the NHMFC and subsequently resolve them.
ADB will also invest in a 10% equity stake in Bahay Financial Services, Inc., a loan servicing company that will be established by DBGO and is
expected to employ more than 350 people to restructure and service the NPLs on behalf of Balikatan Housing, Inc. The NPL portfolio sold by
NHMFC has a total outstanding principal balance of P13.45 billion or about US$239 million, and comprises more than 53,000 individual loans
secured by low- and middle-income housing units located within 500 housing subdivisions throughout the country. In May 2004, following a
competitive auction, DBGO signed a loan sale purchase agreement with NHMFC. DBGO, a $360 million fund that invests globally in real estate
and real estate-related assets, is managed by DB Real Estate, the real estate asset management arm of Deutsche Bank AG. Managing more
than $56 billion, DB Real Estate is the world's largest real estate fund manager based on assets under management. ADB intends to fund a
major portion of its peso-denominated loan to Balikatan Housing, Inc. by issuing its first Philippine-Peso denominated bond in the domestic
bond market. The total project cost is estimated at P10.1 billion or about $179.6 million. The International Finance Corporation (IFC) will provide
financing to Balikatan Housing, Inc. alongside ADB on a 50/50 split basis. ADB will play a catalytic role in the nascent distressed asset market
in the Philippines, catalyzing the disposal of nonperforming loans and nonperforming assets in the financial services industry. Project will also
help provide much-needed liquidity to the Philippine pension system through the repayment of NHMFC's debt to the Social Security System and
the Home Development Mutual Fund. NHMFC was created to develop and provide a secondary market for home mortgages in 1977. Following
an executive order mandating public pension fund systems to fund the cash-strapped low-income housing sector in the late 1980s, NHMFC
established the Unified Home Lending Program to meet the housing finance needs of members of these public pension fund systems. But
despite growth in meeting the country's housing backlog, the program increasingly faced difficulties in terms of low repayment rates and huge
amounts of uncollected loans.
11
NHMFC's Disposal of NonPerforming Loans 35
MA. ELISA B. PATERNO
mpaterno@adb.org (PSOD)
National Housing Mortgage Finance Corporation (NHMFC) disposed
of a portfolio of non-performing mortgages through a competitive
auction process. On 18 May 2004, DB Real Estate Global
Opportunities IB, L.P. (DBGO) emerged as the winning bidder.
DBGO is a $360M fund that invests globally in real estate and real
estate-related assets, managed by Deutsche Bank AG. The
Portfolio consisted of approximately 55,300 individual mortgage
loans, secured by single-family homes located throughout the
Philippines. The Portfolio loans had an aggregate outstanding
principal balance of P13.45B ($239M). Balikatan Housing Finance
(BHF), the Special Purpose Vehicle set up and owned by DBGO
and NHMFC acquired the Portfolio and enter into a servicing
agreement with Bahay Financial Services (BFS) for the servicing
and resolution of the Portfolio loans. ADB's financial assistance
includes: (i) a secured, non-recourse senior loan of up to $33M
equivalent to BHF, and (ii) equity investment of up to $1M
representing a 10% equity stake in BFS. Project sponsors are
Deutsche Bank Real Estate Global Opportunities IB, L.P. and
NHMFC.
Private sector loan
Dec 2004
29.24M
12
REFERENCES:
[TAR – Technical Assistance Report; TACR – TA Completion Report; RRP – Report and Recommendation
of ADB President; PCR – Project Completion Report]
Power Sector Development Program (PSDP) http://www.adb.org/Projects/project.asp?id=37752;
http://www.adb.org/Documents/RRPs/PHI/37752-PHI-RRP.pdf; http://www.adb.org/Documents/LegalAgreements/PHI/37752/37752-PHI-LBG.pdf; http://www.adb.org/Documents/Legal-Agreements/PHI/37752/37752-PHILBG-A.pdf
1
2
ADB and Japan Fact Sheet (p.9) http://www.adb.org/Documents/Fact_Sheets/JPN.pdf
3
Rural Electric Cooperatives http://www.adb.org/Projects/project.asp?id=41406
4
Visayas Base Load Power http://www.adb.org/Projects/project.asp?id=43906
5
Philippine Energy Efficiency Project http://www.adb.org/projects/project.asp?id=42001
Privatization and Rehabilitation of 600-MW Calaca Coal-Fired Thermal Power Plant
http://www.adb.org/Projects/project.asp?id=41958
6
Acquisition and Rehabilitation of Masinloc Coal Fired Thermal Power Plant
http://www.adb.org/projects/project.asp?id=41936; http://www.adb.org/Documents/PIDs/41936014.asp;
7
8
Pasuquin East Wind Farm Development Project http://www.adb.org/Projects/project.asp?id=42128
Electricity Market and Transmission Development http://www.adb.org/Projects/project.asp?id=36018;
http://www.adb.org/Documents/PIDs/36018013.asp; RRP (Nov 2002)
http://www.adb.org/Documents/RRPS/PHI/rrp_36018-01-phi.pdf; http://www.adb.org/Projects/project.asp?id=35436
9
Sector Assistance Program Evaluation of ADB Assistance to Philippines Power Sector, ADB-Operations
Evaluation Department (Sep 2005) http://www.adb.org/Documents/Reports/SAPE/PHI/SAP-PHI-2005-09.pdf]
10
Power Sector Restructuring Program RRP (Nov 1998)
http://www.adb.org/Documents/Profiles/LOAN/31216013.ASP; http://www.adb.org/Documents/RRPs/PHI/rrpR21098c1.pdf, PCR (July 2004) http://www.adb.org/Documents/PCRS/PHI/pcr-phi-31216.pdf
11
12
Water District Development Project http://www.adb.org/Projects/project.asp?id=41665
13
Implementing Pilot Projects for Small-Piped Water Networks http://www.adb.org/Projects/project.asp?id=39124
14
MWSS New Water Source Development http://www.adb.org/Projects/project.asp?id=35379
Pasig River Environmental Management and Rehabilitation Sector Development Program
http://www.adb.org/Projects/project.asp?id=30308
15
16
Credit for Better Health Care Project http://www.adb.org/Projects/project.asp?id=41664
17
Health Sector Development Program http://pid.adb.org/pid/LoanView.htm?projNo=33278&seqNo=02&typeCd=3
Supporting Information Sharing and Exchange among Civil Servants
http://www.adb.org/Projects/project.asp?id=38571
18
19
Fund for Technical Education and Skills Development http://www.adb.org/Projects/project.asp?id=23229
20
Secondary Education Development and Improvement http://www.adb.org/Projects/project.asp?id=25182
13
21
Financial Market Regulation and Intermediation Program http://www.adb.org/Projects/project.asp?id=38276
22
Basic Urban Services Sector Project http://www.adb.org/Projects/project.asp?id=41081
23
Irrigation Systems Operation Efficiency Improvement Project http://www.adb.org/Projects/project.asp?id=33453
Integrated Natural Resources and Environment Management Program
http://www.adb.org/Projects/project.asp?id=41220
24
25
Local Government Financing and Budget Reform http://www.adb.org/Projects/project.asp?id=39516
26
Development Policy Support Program http://www.adb.org/Projects/project.asp?id=40538
Strengthening the Philippine Government Electronic Procurement System
http://www.adb.org/Projects/project.asp?id=42537
27
28
Governance in Justice Sector Reform Program http://www.adb.org/Projects/project.asp?id=41380
29
Agrarian Reform Communities Project II http://www.adb.org/Projects/project.asp?id=37749
30
Integrated Coastal Resources Management http://www.adb.org/Projects/project.asp?id=33276
31
Government Owned and Controlled Corporations Reform http://www.adb.org/Projects/project.asp?id=39606
32
Microfinance Development Program http://www.adb.org/Projects/project.asp?id=38579
Support Sale of Equitable PCI Bank NPL and NPA Portfolio
http://www.adb.org/Media/Articles/2005/7924_Philippines_nonperforming_loans/
33
Resolve Nonperforming Assets in Philippine Housing Sector
http://www.adb.org/Media/Articles/2005/7659_Philippines_housing_sector/
34
35
NHMFC's Disposal of Non-Performing Loans http://www.adb.org/Projects/project.asp?id=37919
14