Philippines secures Australia grant, UK financing for projects

The Philippines has secured an AUD 45 million, or around PHP 2 billion, Australian grant while gaining access to up to GBP 5 billion, or approximately PHP 419.90 billion, in UK Export Finance support as the government seeks to unlock investment, infrastructure and job creation.

The two arrangements tackle different constraints on economic growth, with the Australian program focused on improving the regulatory and business environment while the United Kingdom partnership provides a framework for financing strategic and viable projects.

Their impact will ultimately depend on whether regulatory reforms reduce the cost and uncertainty of doing business and whether financing commitments translate into projects that improve infrastructure, energy security, productivity and employment.

The Australian-supported Promoting Growth, Resilience, Economic Stability, and Sustainability in the Philippines, or PROGRESS, Subsidiary Arrangement Program will finance reforms designed to make doing business easier, attract investments and strengthen the government’s capacity to deliver sustainable and inclusive growth.

“This grant reflects Australia’s continued commitment to our development priorities,” Finance Secretary Frederick D. Go said during the program’s launch.

PROGRESS will support efforts to eliminate unnecessary barriers, make regulations more predictable, reduce the cost of doing business and pursue reforms in strategic sectors such as clean energy and critical minerals.

The program will also support the Luzon Economic Corridor through project preparation, streamlined approvals, public-private partnerships and blended finance.

The government expects these measures to help move priority projects from the pipeline to actual implementation while strengthening Philippine competitiveness and energy security.

The initiatives are also intended to deepen regional supply chains and generate more opportunities for investment, businesses and employment.

PROGRESS will build on reforms already being pursued by the Philippines, including the CREATE MORE Act, Green Lanes for Strategic Investments, the Public-Private Partnership Code, land and right-of-way reforms and the continued digitalization of government processes.

The Green Lanes initiative is intended to speed up government transactions involving qualified strategic investments, while the PPP Code provides the legal framework for developing and implementing public-private partnership projects.

The PROGRESS launch follows the signing of its subsidiary arrangement in March and brings government agencies and other stakeholders together to convert the program’s objectives into concrete interventions, shared ownership and measurable results.

The Philippines and Australia have maintained bilateral relations for more than 80 years and development cooperation for five decades.

“The Department of Finance is committed to working closely with Australia and all our partners. We want to have tangible results immediately. Together, let us deliver PROGRESS as fast as possible for Filipinos,” Go said.

Separately, the Philippines and the United Kingdom signed a government-to-government partnership providing access to as much as GBP 5 billion, approximately PHP 419.90 billion, in UK Export Finance support for priority programs and projects.

Unlike the Australian grant, the GBP 5 billion represents financing support available for qualifying projects rather than an automatic transfer of the full amount to the Philippine government.

The partnership was finalized by UK Trade Minister Lord Anas Sarwar, UK Ambassador Sarah Hulton OBE and Go.

“We are opening new opportunities to bring financing, expertise, and partnership to projects that matter to the Filipino people. This Government-to-Government Arrangement gives us a practical framework for financial and development cooperation. Ultimately, this partnership must translate into jobs, stronger businesses, better infrastructure, and broader opportunities for Filipinos,” Go said.

“Delivering on our recently published G2G Strategy, this partnership shows the UK building modern trade relationships that will deliver tangible economic benefits—jobs and growth—both at home and abroad. This G2G is a route for the Philippines to access UK expertise, goods, services and financing; and for British businesses to partner with the Philippines and participate in future projects,” Sarwar said.

The agreement comes as the Philippines continues its transition toward upper-middle-income country, or UMIC, status.

The government said reaching the next stage of development will require sustained productivity and investment, more and better jobs, greater economic resilience and economic growth that is both inclusive and equitable.

With the government-to-government framework in place, Manila and London will work on identifying and advancing strategic and viable projects aligned with the Philippines’ development agenda.

Discussions on possible projects had already begun through the Infrastructure Sectoral Working Group of the Philippines-UK Joint Economic and Trade Committee, or JETCO.

Potential cooperation covers the energy transition, sustainable transport, water and sanitation, aviation and social infrastructure, among other sectors.

The UK’s participation in the Luzon Economic Corridor also opens another channel for combining financing, technical expertise and private-sector investment for projects across Luzon.

The cooperation is expected to focus on connectivity, energy systems, digital infrastructure and advanced manufacturing supply chains.

The financing framework could give Philippine projects another source of capital and technical expertise, but actual access to the GBP 5 billion ceiling will depend on the identification and advancement of eligible projects.

The Philippine-UK agreement also coincides with the two countries’ commemoration of 80 years of diplomatic relations this year.

Go thanked the UK government for its support and reaffirmed the Philippines’ commitment to a bilateral partnership that converts financing and investment opportunities into tangible benefits for Filipinos.