ADB pledges USD 1.75B crisis support for Philippines

The Asian Development Bank said it is ready to provide up to USD 1.75 billion in additional financing to the Philippines as the country braces for economic pressure from the ongoing Middle East conflict and its impact on global fuel and commodity prices.

ADB President Masato Kanda made the commitment during a courtesy call with President Ferdinand R. Marcos Jr. at Malacañang Palace on Friday, May 15, where the Manila-based multilateral lender reaffirmed its support for the Philippines in managing external shocks.

Kanda was accompanied by other ADB executives during the meeting.

“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” Kanda said. “ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience.”

The proposed financing forms part of a broader support package that may include policy-based lending, countercyclical lending and possible trade finance assistance.

The additional support is on top of around USD 2 billion in policy-based loans already being prepared for the Philippines this year, according to ADB.

The Philippines remains exposed to global supply disruptions because of its reliance on imported oil, fertilizers and other commodities.

The pressure prompted Marcos to sign Executive Order No. 110 on March 24, declaring a state of national energy emergency in response to risks from the Middle East conflict.

EO 110 cited “the ongoing conflict in the Middle East, and the resulting imminent danger posed upon the availability and stability of the country’s energy supply.”

The order said the declaration was intended to ensure “the uninterrupted delivery of essential services, the continuity of economic activity, and the welfare of all citizens, particularly vulnerable sectors.”

The executive order also adopted the Unified Package for Livelihoods, Industry, Food, and Transport, or UPLIFT, as the government’s coordinated response framework.

The UPLIFT Committee, chaired by Marcos, has been convened to oversee the program.

The program includes fuel subsidies, excise tax reductions on select petroleum products, and targeted cash assistance for transport workers, farmers, fishers and repatriated overseas Filipino workers.

ADB said its assistance is designed to help the government manage fiscal pressures while protecting vulnerable communities.

The lender said its strategy also includes advisory work with key agencies, including the Department of Agriculture on domestic fertilizer security and the Department of Social Welfare and Development on social protection systems.

ADB said the package also covers support for energy security, clean energy development, energy efficiency and mass transit investments aimed at reducing the country’s exposure to fuel-price shocks.

The bank’s broader development priorities in the Philippines include human development, economic competitiveness, quality infrastructure, disaster resilience, climate adaptation and skills development for employment recovery.

The energy emergency came as global energy markets faced instability from the Middle East conflict, with the Philippines seeking to secure supply and manage inflation risks tied to higher fuel prices.

ADB was founded in 1966 and is owned by 69 members, including 50 from Asia and the Pacific.

The bank describes itself as a leading multilateral development institution supporting sustainable, inclusive and resilient growth across the region.